Fed Balance Sheet Stuck At $4.5 Trillion
The decision by the Fed was mainly covered by the press as the third rate hike since the financial crisis, but I contest the biggest story is the new stance to avoid shrinking the balance sheet in the medium-term. Heading into the meeting, I made a convoluted prediction in that I expected the Fed to…
Fed Raises Rates: Stocks & Bonds Rally
The Fed announced it raised rates 25 basis points in its March statement. Furthermore, it stated it would be raising rates two more times in 2017 and three times in 2018. Finally, Yellen stated there wouldn’t be any near-term movement to unwind the Fed’s $4.5 trillion balance sheet. There is a lot to unpack with…
Bonds Higher, but Financials Do Not Dip?
The FMOC talked and no one seemed to listen. At least not us traders, markets got the rate hike they were expecting and yet bonds rallied. But what really caught us by surprise is after the FMOC announcement, interest rates tanked and financial stocks did not respond. Opportunity? We believe so, take a look at…
Fed Hike Incoming
In this article, I will discuss my prediction of what the Fed will do on Wednesday. I am writing this article before the announcement, but you may be reading it afterwards. It’s still valuable insight because it gives you an idea of where the Fed is in the monetary cycle. The three parts to discuss…
Are The Bulls Giving Up?
The stock market fell slightly on Tuesday as it prepares for the Fed to hike rates on Wednesday. In this article, I will discuss the latest changes to the macro environment, namely the decline in sentiment surveys and the increase in the producer price index which may soon reverse because of falling oil prices. Bull…
How Can the Fed Cause the Most Pain?
The indexes ended the day slightly lower as all eyes are on the Fed. The market is pricing in a 93% probability of a 25 basis point increase in short term rates tomorrow. In tonight's video let's review what a rate hike could mean to the stock market. Is this another "sell the news" situation?
CBO Rates Ryancare
In this article, I will review the latest charts which show the speculative craze the stock market is in. Then, I will update you on the latest information on the GOP’s healthcare plan. On Tuesday, the NFIB will release its latest survey on business optimism; it has been the poster child for the positive survey…
9.8% Earnings Growth Expected In 2017
This week is going to be centered around the Fed’s decision on interest rates on Wednesday. This rate hike will be met with much less angst than the previous two as investors become accustomed to the Fed raising rates at a faster clip than 25 basis points per year. The decision on rates will be…
SNAP Back to Reality?
Today marked a very slow trading day on light volume. In tonight's video let's talk SNAP and how if you want to trade this stock here are some tips that will save you money. Also, don't expect the rest of the week to be slow. Here's what to expect by Wednesday...
SEC Denies Bitcoin ETF: Bitcoin’s Price Crashes
In this article, I will discuss the latest developments in European monetary policy and review an interesting chart which shows historical real labor unit costs, but first I will react to the breaking news about bitcoin which was released Friday afternoon. Bitcoin ETF Denied The, much heralded by the media, Winklevoss Bitcoin ETF was denied…