In the past, industrial production has been the King of Coincident Indicators, since its peaks and troughs tended to coincide almost exactly with the onset and endings of recessions. That weighting has faded somewhat since the accession of China to the world trading system in 1999 an the wholesale flight of US manufacturing to Asia, generating several false recession signals, most notably in 2015-16. But it is still an important coincident measure in the economy. As with last month, there were significant downward revisions, but the story this month was a strong rebound. Total production was reported higher by 0.8%, and manufacturing product...
Image Source: Pexels Since 2020, momentum investing has generated significantly better returns than other strategies. Such is not surprising, given the massive amounts of stimulus injected into the financial system. However, Brett Arends for Marketwatch noted in 2021 that momentum investing can give you an edge. To wit: “Its success ‘is a well-established empirical fact,’ and can be demonstrated across multiple assets and over 212 years of stock market data, argues money manager Cliff Asness and his colleagues. It is ‘the premier market anomaly,’ Cliff Asness and his colleagues. It trounces a simple ‘buy and hold’ stock mar...
Image Source: Pexels Could Tesla (TSLA) be gearing up for a major bullish run? Veteran analyst Rick Pedicelli breaks down five critical technical factors that suggest a potential swing buy entry for the electric vehicle giant.Tesla (TSLA), the electric vehicle powerhouse, is showing signs of a potential swing buy entry according to Rick Pedicelli, a veteran analyst with over 20 years of trading experience. In this blog post, we’ll dive deep into the five key technical factors Rick has identified that could signal a major bullish move for TSLA. Plus, we’ll reveal an exclusive Nasdaq signal that could confirm this setup. Setting the Stage...
Image courtesy of 123rf.com Despite the September Effect burden on top of the early August market correction, the US stock market has largely recovered. Ahead of the much-anticipated rate cuts, the Dow Jones Industrial Average index (DJI) closed at a record high on Monday, presently at 41,800 and up 3.5% within the last five days.Likewise, the tech-oriented Nasdaq Composite (IXIC) rose by nearly 4%, returning to August-end level of over 17,700. At the same time, CBOE Volatility Index (VIX) is down 10% since last Wednesday, mirroring investors’ optimism as they anticipate the end of the high interest rate regime. Although market swing co...
Image Source: Unsplash E.J. Antoni, PhD, Economist and Research Fellow at the Heritage Foundation, explains why the Fed’s plan to cut interest rates won’t solve deeper economic problems—such as runaway government borrowing and record deficits—that threaten American financial stability. He uncovers how the Fed is at loggerheads with the US Treasury, creating a dangerous conflict between monetary and fiscal policy that exacerbates inflation, unemployment, and high credit costs, impacting American households. E.J. joins Wealthion’s Andrew Brill as part of our special coverage of the Fed’s Federal Open Market Committee this week, hig...
Image Source: Pexels Bob Lang gives a technical analysis of the stock chart for V.Audio Length: 00:02:02More By This Author:Forget Labels – Just Follow The Market Trend Roku Inc. Chart AnalysisMarket Blast – August 26, 2024...
Image Source: DepositPhotos What is Cloud Computing? Cloud computing (CC) is the technique of processing, storing, and managing data on a network of remote computers hosted on the internet by cloud service providers rather than on a personal computer or local server using only as much compute power and storage as needed to meet demand. This theoretically allows for cheaper and faster computing because it eliminates the need to purchase, install, and maintain servers. What is SaaS?SaaS, also known as cloud application services, makes software available to users over the internet, usually for a monthly subscription fee. They are typically re...
Image Source: Pexels There is no doubt that a Triple Witching Day brings notable price swings. Curious about how to capitalize on this?Today I will try to unravel the enigma behind this event, its impact on the stock market, and the seasonal nuances accompanying it.Mark your calendars for the third Friday of every last month in a quarter – March, June, September, and December. This is when Triple Witching unfolds. The term signifies the concurrent expiration of three specific securities: stock index futures, stock index options, and stock options. Interestingly, this phenomenon was previously referred to as the “Triple Witching Hour” ...
Image Source: Pexels (I’m not linking the song that shares this title. I’ve never liked REO Speedwagon)Yesterday’s piece, comparing the 25 vs. 50-basis point question facing the Federal Reserve to the “will they / won’t they” decision in a formulaic romantic comedy, must have put an ’80s power ballad into my head. Regardless of the source, I have been forced to reckon with the nagging suspicion that tomorrow’s FOMC meeting has the potential to be a major “sell the news” event.As I type this, the markets have not fully coalesced around a consensus outcome for the rate decision. The CME FedWatch currently shows a 60/40 s...
Image Source: Pixabay Yet again, the US administration sends a high-level trade delegation to Beijing to discuss curtailing its exports, not only to the US but to the rest of the world. Over the past year, the US Secretary of Treasury and Secretary of Commerce undertook the long flight to Beijing to cajole Chinese officials to reduce their manufacturing overcapacity. The latest effort is lead by the US Treasury undersecretary for International Affairs. Just why is the US so eager to curb Chinese manufacturing? This time around the US is speaking not only for itself but on more global scale. Simply, China’s enormous manufacturing sector is...