A Look At How Small Businesses Are Doing
The chart below shows a new tailwind the stock market has going for it now that the earnings recession is over. As you can see from the chart on the top, the green line showing operating earnings has surpassed the combination of dividends and buybacks. This decline in capital returned to shareholders is only because…
Yellen Sings A Dovish Song With Brainard
Janet Yellen’s testimony before the House committee was what drove markets on Wednesday. The key takeaway from the testimony was that she was moderately more dovish than she was previously. This dovishness led to a rally in stocks and bonds. The S&P 500 rallied 0.73%, the Russell 2000 increased 0.80%, and the VIX fell 5.42%…
This is Why Stock Went Higher Today
Stocks exploded higher today on surprisingly dovish comments from the Fed. Is this the start of another bull leg higher or a blip for the bears who are fighting to take back control. Watch tonight's video to find out...
Potential Further Yield Curve Steepening
Earlier this year I used the positioning in the 10-year bond to predict a rally which lasted for over 3 months. It ended recently as yields have risen about 35 basis points in the past few weeks. Now we’re at a similar point with the 2-year bond. As you can see from the chart below,…
Earnings Estimates Are Stagnant (Which Is Great)
It’s important to recognize that there are many people in the financial industry who will never change their minds regardless of the facts. When you realize that, you become more skeptical of every opinion, which is a great skill to hone. For example, mutual fund managers are always optimistic about the long term because they…
Financials vs. Technology: The Battle for the S&P 500
The S&P ended the day massively unchanged in an uneventful trading session. In tonight's video we look at the battle for the S&P 500. It really comes down to a handful of tech stocks and a handful of financial stocks. Over the next week we will get earnings releases from the major trading firms. If…
Index Correlations Collapse, What’s Next?
On the surface stocks continued to rebound today. In tonight's video update we dive deeper and look at the index correlations. Why are they so important and what do they tell us about what may come next? Watch tonight's video to find out. Join us this week for "Greek Week" which includes access to our…
Setups and Trade Ideas for Next Week
Stocks rebounded on Friday on better than expected employment data. This weekend video is a crucial update on the markets. Watch this video right now to find out what has been working every week for us and the opportunities for next week. Join us next week for "Greek Week" which includes access to our trading…
Two Rules to Reversals
Stocks fell across the board today. An all out equal selling is not something we have seen for a while although typical of markets. In tonight's video we look at the two concepts we talk about a lot which are range expansion leading to range contraction. Watch tonight's video for these two rules to reversals...
Shorting the Tech Bounce
Today the tech sector bounced while oil and energy fell out of favor. In tonight's video we look at how to short the tech bounce. Watch this video to find out the specific stocks we are looking to short and how you can take advantage of the tech volatility...