Yellen Admits She Was Wrong About Inflation
The top news on Tuesday was Yellen’s speech delivered to the National Association for Business Economics in Cleveland. The topic of conversation was how badly the Fed has miscalculated inflation. It’s surprising to see this coming up so soon after the Fed’s decision on rates because the Fed was hawkish and this was a dovish speech. At…
Hurricane Harvey Leaves Its Mark
Dallas Fed Shows The Impact From Harvey Let’s look at some of the other points from the Dallas Fed survey to get a complete look at what’s happening in Texas after hurricane Harvey. A transportation equipment manufacturing firm said “Fortunately, we only had minor issues due to Hurricane Harvey, and those were mostly related to…
Why is the Russell 2000 Leading Markets?
The overall indices are showing signs of exhaustion. That typically means that some industries are up and some are down canceling out each other on the overall indices. In tonight's video newsletter update we focus on the industries that are up. Watch the video for trading opportunities to keep a close watch on...
Credit Spreads Tighten For 18 Months
The chart below shows the situation the bond market is currently in. The tightening of credit spreads has occurred for the past 18 months as the ECB’s bond buying has been combined with animal spirits creating a great scenario for risky bonds. As you can see, this is the longest period of tightening since the…
Q3 Earnings To Be Impacted By The Hurricanes
It appears the healthcare debate is over for the time being. The conversation will now move towards tax reform in the next few weeks. The chart below is a great representation of how each reform measure would affect people in various income groups. Each color represents one of the 6 reform measures being discussed. Of…
NASDAQ Under Pressure, but This is What Matters Most
NASDAQ lower by nearly 1% today while other indices close near flat as the capital rotation game continues. The monsters of tech were the big losers of the day as trading firms jockey for position. In tonight's video newsletter update we focus on what matters most right now in the market. Watch the video for…
Valuation Won’t Be A Catalyst
Q3 GDP Will Be Impacted By The Storms The chart below shows the NY Fed’s GDP Now estimate for Q3. It’s been consistently the most negative forecast out of any I follow. As you can see, it’s estimate improved 0.22% from last week mainly because of the lift from the building permits data. The current…
No Lines For iPhone 8 In China
A couple of the stories we’ve been watching this week had notable information released about them. The first news was that Apple’s iPhone 8/ 8 Plus was met with little excitement in China which caused AAPL stock to fall again. There were barricades put up in front of the Apple store on the day the…
Markets are a Powder Keg of Risk
The S&P ended the week right where it started. However, this has been the tale of multiple markets. In this crucial video market update we look at why the new Fed policy will do the opposite of what most people think and what that means for your trading.
Economy Recovering From Hurricanes
Graham-Cassidy Vote Coming Mid To Late Next Week The deadline to pass the Graham-Cassidy healthcare bill in the Senate is September 30th which is in 8 days. If it does pass the Senate, the House will have enough time to vote on it. The issue is never going to be time. Deadlines are the catalyst for Congress…