Latest Posts
-
Finance 0
French Election Crushes Volatility
Today’s rally mostly happened last night when the Futures markets opened. The major index Futures gapped up and then stayed in a tight range throughout the trading session. The biggest surprise was the volatility crush caused by the French election. The market breathed a sigh of relief as only one of the two anti-EU candidates made it into the final round. Now who can help but wonder how short the relief will last. This week there will be a major tax plan unveiled and GOOGL earnings announced. Then the latest battle between globalists and nationalists will play out in the final round of the French election in 2 weeks… Video Length... -
Finance 0
Big Difference Mechanical Tightening
The mainstream narrative as it relates to Chinese money is “tightening.” Having survived the economic downturn last year, we are to believe that the PBOC is once again on bubble duty. They raised their reverse repo rates, considered to be their policy benchmarks, three times up to mid-March. The central bank also increased the rate on its Medium Term Lending Facility (MLF) which has been a main source of RMB liquidity but for reasons that don’t conform to the narrative. The PBOC balance sheet for the month of March 2017 shows us the impacts of both its currency policy as well as at least some outward appearance of tightening. There was ... -
Finance 0
Sector Strength – Monday, April 24
The US Dollar dropped right down to the 200-day. Where next? The decline off the late 2016 high is so choppy that it makes me think the next big move is higher, not lower. But other indicators point to a lower dollar. This chart favors a lower dollar with non-US large caps outperforming US large caps. The coil broke to the upside despite the lower dollar. The short-term up trend looks like it started last week. I missed it, but now that the PMO index is back I am feeling in sync with the trend again. Just looking at the bottom panel of this chart, you wouldn’t know that this was a gap up new high for the NDX. The top panel sure looks go... -
Finance 0
Low Volatility Is Crucial For SPX Breakout
Even though the S&P 500 Index (SPX) did not reach a new all-time high today (Monday), the SPX:VIX ratio did, as shown on the following two Daily charts. Keep an eye on the ratio, since an RSI above 50 and upside crossovers on the MACD and PMO indicators are signalling that a new bull market is shaping up for the SPX. Such a breakout would need to be confirmed by a bullish crossover on the PMO, with the crossover maintained on the MACD and the 50 level held on the RSI on the SPX.... -
Finance 0
Whole Foods Soars On Buyout Talks By Albertson
Shares of Whole Foods Market, Inc. (WFM – Free Report) rallied Monday afternoon after a Financial Times report suggested that Albertson, a U.S. supermarket operator, is exploring the possibility of buying the high-end grocery store chain. Albertson, backed by Cerberus Capital Management, is the third largest supermarket chain behind Wal-Mart (WMT – Free Report) and Kroger (KR – Free Report). Cerberus reported holding a preliminary talk with bankers about making a bid, although no formal bid or announcement have been made yet. Albertson’s interest in Whole Foods comes after the news that activist investor Jana P... -
Finance 0
Baby, We Were Born To Run
Even this fast-running Roadrunner pauses at the Handicapped Parking sign. A bird born to run, it can outrace a human. It can kill a rattlesnake. It thrives in the harsh desert landscape. Last week, the market paused at the many potential handicap signs. This week however, the market once again proves it is born to run. Like a Roadrunner, the market eats poisonous prey with no ill-effect. Like a Roadrunner, the market outraces many humans, especially those who come in bearish. Like a Roadrunner, the market thrives in harsh landscapes. Although agile on the ground, Roadrunners do not fly well. Over the weekendI wrote, “What’s scariest is an... -
Finance 0
Breakouts All Around: Nasdaq, Russell 2000 And S&P
The French election result was greeted as a welcome trigger for breakouts. All indices benefited from the action. Best of the action was in the Russell 2000. The Russell 2000 cleared 1,390 which marked a resistance level of the former bearish consolidation triangle. Technicals are all bullish and an intraday move which pushed below 1,390 but came back by the close would be very healthy for bulls. The Nasdaq gapped to new all-time highs. The bulk of the gains were banked by the open. If Monday’s gap can hold then the breakout gap has the potential to become a measuring gap; which would put a target of 6,380s on the menu. The gap breako... -
Finance 0
E It’s Happening Again: When Media Loves Investing, Investors Should Worry
Thesis: As we last saw in 2008, we now have popular TV shows devoted to Wall Street and hedge funds, as well as self-help gurus turning investment authors. All of these are ominous signs to the intelligent investor who can view these events in a historical context. Some examples of Wall Street, hedge funds, and investing invading the mainstream culture: 2008: (June 2008): CNBC: Super Wealth and New Gilded Age. CNBC presents “Untold Wealth: Rise of the Super Rich” Faber interviews 43-year-old Anthony Scaramucci, a hedge fund executive worth over 80 million dollars who, like many of his colleagues, came from modest beginnings and gr... -
Finance 0
Stocks Rally As Macron And LePen Make Second Round Of French Presidential Election
Inflation Decelerates Before I get into the latest market moving headlines this week, I want to emphasize the recent movement in inflation. While I have mentioned the decelerating inflation in passing, I didn’t give it enough coverage considering the large movement the CPI had in March. As you can see from the chart below, the core CPI was negative on a month over month basis for the first time since January 2010. Even in recessions the core CPI turning negative is a rare event. The bond market had been forecasting the decline in inflation since March. This isn’t a one-off situation because inflation is decelerating, but I wouldn’t expe...
Top Posts
-
The Importance for Individuals to Use Sustainable Chemicals
-
Small Businesses: Finding the Right Candidate for the Job
-
How to Write the Perfect Thank You Letter After Your Job Interview
-
3 Best Large-Cap Blend Mutual Funds For Enticing Returns
-
China suspected in massive breach of federal personnel data
