The Dollar Ends Correlation With Trump Trade
Going into the year I predicted the Trump trade would unwind. This means I expected the dollar rally to end, interest rates on government bonds to fall, inflation to fall, and cyclical stocks to fall. I still hold this view and it’s too early to make a final judgement on this perspective. However, there’s been…
Tech Earnings Season Fireworks, Correlations and Complacency
Just a day after major averages trade to new all-time highs, stocks moved sideways on Thursday amid another earnings barrage for investors to digest. The Dow Industrials held above the 20K level, day after topping it for the first time ever (high of 20,125 today), while the S&P 500 index briefly touched the 2,300 level…
Snapchat Readies For IPO
I consider Snap to be the most interesting IPO of this year because of how fast it is growing and the potential $25 billion valuation it may receive. Snapchat is an app that teenagers and 20 somethings love, but transitioning to a real business is tough. The app which was known as a flirting device…
With Markets at ALL time Highs What are YOUR Risks?
U.S. stocks advanced today, with the Nasdaq, S&P 500, Russell 2000 and Dow each posting new all-time highs. The Dow finally topped the 20,000 level on a continued rally that has been propelled by expectations of stronger economic growth and government spending under the new Trump’s administration. It was a similar picture in Europe as…
Dow Hits 20K: Bubble Continues
The higher the market goes, the larger the crash will be when it unwinds. That’s the way I look at the latest rally in stocks which finally put the Dow over the 20,000 mark. The tight range was finally broken in a big way today as each major index, including the Russell 2000 was up…
Snapchat Is Not Groupon
There was recently an article on CNBC about why Trip Chowdhry, the managing director of equity research at Global Equities Research, believes the Snap IPO is “total junk.” He thinks the social media phase is over and users don’t want to try new apps. I think Trip was projecting his own personal viewpoints instead of…
Bigger Range Around the Corner
U.S. stocks with a stealth rally this afternoon, pushing to highs throughout the session, with over 40 new 52-week highs in the S&P 500. Including IBM which TheoTraders had a position in and closed today with a 70% profit. With today’s gains, the Nasdaq Composite traded above its prior intraday high of 5584.26, led by…
Is The Market Off?
In my article yesterday, I mentioned the market has been in a very narrow range. Today data on the S&P 500’s range was posted on CNBC. The 1.6% range the S&P 500 has been in, in January is the narrowest range since November 1965. The tight August range was 2.1% which was the narrowest since…
Will The Market Continue Its Plateau?
Today the market sold off slightly as it maintains the plateau it has been at since mid-December. This reminds me of the market in August where it hit new highs, but barely moved. In the few months leading up to the election, I had noticed volatility was low historically when you look at other pre-election…
Skew Remains Large in a Tale of Two Markets
U.S. stock averages opened the day in negative territory, but pared losses into to the close for 9th time in the last 10 trading day. Most of the news of the day focused around Donald Trump and several policy changes on his first working business day in the new administration. The NASDAQ bounced more than…