Frackers Feel The Pain As Oil Collapses
Record Streak For Nasdaq 100 I am attempting to contextualize the recent rally in tech stocks. In doing so there will be some bearish points and some bullish points. Also, keep in mind that some tech stocks have better fundamentals than others. I consider it to be bearish when new records are made in terms…
Volatility Will Do This and That's Good
Stocks sell off early and then recover most of the losses by the close. In tonight's video we look at what volatility will do as the market becomes more unstable. The wider daily ranges is exactly what we want to see. Watch tonight's video to find out why that's good...
The Fed’s Unwind Is Canceled Out By The ECB
Besides oil pressuring inflation, it looks like shelter inflation is also starting to decline. As you can see from the chart below, both shelter inflation and rent inflation are coming down. This is logical because apartment real estate prices are starting to come down as it appears there were too many apartment buildings built. The…
Fed Goes Through With Hawkish Hike Despite Weak Inflation
My prediction for Fed policy was wrong. As a reminder, I was looking for a dovish hike based on the latest disinflation, but instead the Fed didn’t deviate much from its policy. There was a stark difference between reality and what the Fed spoke about today as the core CPI and the headline CPI missed…
Nasdaq Volatility: the Storm is Coming
There was a 99% chance of an interest rate hike today and the Fed did not disappoint. The Fed will continue to slowly raise rates and gave guidance to unwinding their balance sheet. What does this mean for markets? In tonight's video we look at the relationship between bonds and financial stocks. Also, we don't…
Tech Stocks Rebound
Just as I forecasted, the tech stock selloff ended Wednesday as the Nasdaq rose 0.73%. The S&P 500, Russell 2000, and the Dow Jones Industrial Average all hit an all-time closing high. The ECB’s $60 billion in bond buying per month combined with investors putting money into ETFs with a “buy the dip” strategy means…
The Market’s Ignoring the Fed - Finally!
The great asset rotation game continues today. Stocks bounced higher as the Dow made new all time highs while the Nasdaq couldn't recover the losses sustained over the last 2 trading days. In tonight's video we set our sights on the Fed announcement. The market is pricing in a rate increase. Will that impact the…
Apple Stock Drags The Market Lower
Monday’s market action was like Friday’s action in that the S&P 500 closed nearly flat (down 0.1%) and the Nasdaq underperformed as it was down 0.52%. Adding to the weakness in the riskiest markets was bitcoin and ethereum which cratered in the afternoon. Bitcoin fell from $2,997 to $2,519. Some exchanges had bitcoin exceeding the…
Nasdaq Selling presents Opportunity in this...
Friday's market theme continued into Monday as the asset rotation game continued as money got pulled from the major tech stocks into the energy market. In this video market update we identify the next opportunity in the market. Right now everyone is looking at the Nasdaq and they're not paying attention to this... Watch the…
Will Disinflation Affect The Fed’s Decision On Wednesday?
The chart below explains why inflation has been falling lately in Europe and in America. It shows the change in the year over year Bloomberg commodities index. There is a clear trend of disinflation led by oil. Wage inflation isn’t accelerating, so there’s no reason to expect any of the headline inflation numbers, whether it’s…