Markets in Limbo, Here's What Matters Most
Volatility still remains more elevated in the near terms than the long term. The recent market rally has been thanks to only a few stocks and in fact the list of stocks making new highs has been getting smaller and smaller. In this important video newsletter update we point how the risks and opportunities. Watch…
Short End Of The Curve Could Cause An Inversion
Inflation Breakdown Since inflation was mentioned numerous times during Powell’s testimony and then in the interview with former Fed chairs Ben Bernanke and Janet Yellen, let’s look at a breakdown of the metric. As you can see from the chart below, the purple line shows the cellular data series Yellen referred to often last year.…
Fed Chair Powell Has His First Congressional Testimony
The Markets’ Reaction To Powell This Powell testimony reminds me of the Fed Minutes in that the markets’ reaction doesn’t make sense. There wasn’t much in the testimony which was hawkish, but the markets’ knee jerk interpretation was that it was hawkish. The market has been increasing the odds of 4 rate hikes this year.…
Market Reacts to Chairman Powell With Key Reversal
New Fed Chairman Powell testifies in front of Congress for the first and the markets didn't react well to what he had to say. Watch the video now to find out the types of trades you should be looking to place in a volatile market environment...
2018 Earnings Estimates Are Likely Done Increasing
The Estimates Are Done Rising The Q4 2017 earning season is now almost over. I will be reviewing the S&P Dow Jones numbers, but first let’s look at the chart which shows future expectations. With the GAAP earnings being hurt by tax related write downs in Q4, the future estimates are the most important aspect…
U.S. Economy An Emerging Market?
Cycles Not In Tune The developed markets are likely a couple years away from the end of their business cycle, while emerging markets are just recovering from their recession. India and Brazil had weak economies in 2017. They’re looking to see acceleration in 2018. The countries which export commodities are probably going to have a…
Get Your Hedges Back On
Stocks rocket back higher as the market still is pricing risk greater in the near term than in the future. In this video newsletter update we look at ways you can get hedges back on if you're long. Watch the video now to find out which trades we are taking and how to protect your…
Stocks Finish The Week On A Winning Note
Finally, Stocks Rally Stocks were stuck in a rut this week. There were a bunch of failed rally attempts. It’s demoralizing to give up gains so often. It made some investors wonder if the correction was still ongoing. The bears were out in full force predicting the next bear market and recession even though there’s…
Volatility Backs Down but has Risk Really Subsided?
Volatility contracted during the shortened weekend, but is the risk still there? In this crucial weekend video newsletter we look at where the risk may still be and where the opportunity is for you in the coming week. Watch the video now to find out which trades we are taking to take advantage of the…
Central Banks Headed In The Hawkish Direction For The First Time In 9 Years
Hawkish For The First Time In 9 Years The chart below is very interesting because it combines the Bank of England, the Fed, and the ECB’s policy to come up with a rolling 5 year average of rate changes. I would have used a 3 year average because I feel that 5 years is too delayed…