What Do These Correlation Breakdowns Mean for You?
The nasdaq went on a wild ride today and AAPL closed at the edge of the expected move we talked about in last night's video. In tonight's video market update we tackle the long standing market correlations that are breaking down. Watch tonight's video to find out how the correlation breakdowns will impact the…
Junk Bonds May Be Foolish Investment Despite Low Default Rates
The chart below shows that the consumer confidence has diverged from personal consumption. The consumer might be anticipating a tax cut. I am surprised at the resiliency of the sentiment indicators given the fact that there haven’t been any votes on tax cuts in Congress yet. Congress plans to raise the debt ceiling, cut taxes,…
Is The Consumer Doing Well?
Let’s look at various indicators of the health of the consumer to try to get a picture of where economic growth is headed in the second half now that the first half is mostly in the books. Technically, first half GDP is subject to many revisions, but most investors have moved their focus to the…
Apple Dominance or Critical Mass?
AAPL earnings did not disappoint sending the NASDAQ futures higher in after hours. You can expect a strong open in the morning, but in tonight's video you will find out what to expect the rest of the trading day. Watch tonight's video to find out what the most likely thing AAPL is going to do…
Weak Dollar To Help Earnings
The Dollar & President Trump The two most bullish catalysts for stocks in the next twelve months are the repatriation tax holiday which will spur buybacks and the weak dollar. The chart below compares the dollar’s value at the start of President Trump’s term compared with all the presidencies since 1968. As you can see,…
Earnings In Q2 Were Fantastic
Last week was the busiest week in earnings season. Most of the trends that we’ve been seeing continued. It is shaping up to be a great quarter. The details of the reports give us information about what to expect in the next few quarters. Forward earnings expectations are what will drive stocks, so it’s critical…
Expected Moves Drive the Markets
The big 5 stocks held down the overall market from going anywhere today in quiet trading. In tonight's video you will learn about expected moves, how they drive the markets, and how you can use expected moves in your trading. Watch tonight's video for the ONE thing you must know about as a trader...
Moving On To Tax Reform
Healthcare Reform Failed The GOP’s healthcare reform ended up being a bust. It’s all about game theory. As I said, the House could decide to simply pass the “skinny bill” without doing a conference like many of the moderates and some of the conservatives wanted. For Paul Ryan and Mitch McConnell, it was a matter…
Will AAPL Break the Fragile Markets?
Stocks ended Friday mostly flat despite AMZN violently reversing the market on Thursday. In this weekend video we look at the big 5 market cap stocks and let's see if they can continue to drive the overall market higher. Next week all eyes will by on AAPL, the largest market cap stock on the planet.…
Q2 GDP Growth More Than Doubles Q1 The Speed
As expected, the annual GDP growth rate came in between the NY Fed and Atlanta Fed’s projection as it was 2.6%. This was above my expectation for 2.25% growth and slightly below the consensus estimate which was 2.8%. I don’t consider this to be a weak report just because of the slight miss as anything…