Economy
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I am the Loneliest Man Alive!!!
Dear Reader, It feels quite odd, doesn’t it? A week ago, momentum turned Red. I projected that the S&P 500 was on its way to 3,900 – and that the SPY would hit 390. It didn’t happen all at once. It happened slowly. It was a burn. A real burn of lower highs and lower…
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Equity and Bond Markets are at Odds
Dear Reader. The equity market rallied nearly 10% in January alone, and this is despite Fed Chair, Powell, not easing up on his hawkish stance on interest rates. And at the same time the market has rallied with some momentum, the yield curve has inverted. The Federal Reserve Bank of Boston has indicated that the…
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The Disappearing Dream? A Closer Look at “No Landing” and Why It May Be Fading Away Fast
There’s been a lot of chatter around the idea of a “no-landing” scenario with the economy coming out of inflation and fighting off a recession. Prior to the momentum behind “no landing” picking up last month, everybody was all about the soft landing. In that scenario, they could creep up to that line of tightening…
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Shut Up, Shut Up, Shut Up!
Dear Reader, We’re back in positive momentum conditions… just like that. Crazy right? Yesterday, Atlanta Federal Reserve Bank President Raphael Bostic decided to suggest a rate pause later this summer. The algos and arb-strat traders decided to create a rally… We were right at the 200-day moving average for the S&P 500. Another move down,…
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Implied Volatility Is Getting a Lift
Our president visited Ukraine over the long weekend and Russian President, Vladimir Putin is ruffling feather as he talks of suspending his country’s participation in the nuclear arms reduction treaty with the United States. And, to kickstart the week of earnings, Walmart (WMT) shares took a tumble after its year-ahead outlook was lowered – inflation…
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Here’s the Big Problem with This “Trillion-Dollar” Buyback Binge
Shah Gilani Mar 02, 2023 According to the American Prospect, a progressive policy journal, U.S. companies in the S&P 500 spent $5.3 trillion on buybacks between 2010 and 2020. Some analysts believe corporate buying power was responsible for 40% of the rise in stocks over that period, a huge contributing factor to the Great Bull…
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Off to 4,100 We Go
Dear Reader, I wrote this at 10 am. It takes a little while to get things out the door. The S&P 500 just pushed through 4,060 – and it has a clear path to 4,100. That’s where things get tricky. You see, 4,100 is a line in the sand. 4,100 is a key level that…
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A Trading Foundation to Combat Economic Hardship
Dear Reader, The market rallied close to 10% last month, and it has already given back half of the gains, so it looks like our market may very well be on its way to another rollercoaster ride this year. Despite the market looking promising early this year, officials at the World Bank have explained “the…
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Here’s How to Trade the Producer Price Index (PPI)
Producer prices in the United States rose in November by more than forecast, showing once again just how sticky inflationary pressure is.We now have more support for our argument that the Fed is nowhere near done with rate hikes.. What our Experts Have to Say Tags: stock market today The post Here’s How to Trade…
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Consumer Prices Slow and What That Means for The Fed
Wall Street’s indexes rallied Tuesday morning, led by the Nasdaq, which jumped over 3% after consumer prices rose less than expected and raised hope that the Federal Reserve could slow its pace of rate hikes.But the fade in the indexes tells the bigger story.. The fact is Tuesday’s report doesn’t change anything and let me…
