Continual improvment in the labor market and PMI indicators confirming robust expansion are providing more than sufficient evidence for the need to taper Fed asset purchases and normalize rates…
In my opinion, which is what this blog is at the end of the day, this month has been mainly one continuous period of churning. Today the market sided with growth, which is mostly represented by technology stocks. Lower interest rates played a supporting role in the above as
Although today’s economic calendar was light, data in Manufacturing pointed to expansion in this phase of the business cycle. Pent-up demand is driving this growth and putting upward pressure on commodity prices, such as Gold and Oil. Energy and Basic Materials stocks easily outperformed the stock market indexes and all other major sectors. The Federal Reserve, for its part, provided…
Even though the market ended the week with an impressive two-day rally underscored by the superior performance of large-cap tech and small-cap stocks, it was not enough to prevent a weekly loss. In lieu of this, a few new insights were learned about the character of this market or its cycle:
Was today’s trading session a legitimate rally or a dead cat bounce? There were certainly some notable catalysts supporting its legitimacy: 1) the CDC announcement to lift mask requirements for anyone fully vaccinated; 2) Fed bankers defiantly jawboning for lower interest rates in the face of “transitory inflation” data evident in producer prices; and 3) the ongoing improvement in the US labor market. Does anyone sense a “but” statement forthcoming in this analysis?
Front month contracts for Bitcoin and Ethereum were respectively down -9.40% and -10.28%. This unanticipated decline which immediately followed last week’s record highs left many experts scratching their heads and searching for excuses. Here are just a few of them:
SP-500: Bullish reversal is in play and now it needs to overcome resistance @ 3984 to confirm legitimacy. 10-Yr Note Yield: Bullish reversal is indicating a resumption in rising rates. Bitcoin: Selling has ceased and another bullish reversal pattern has formed to establish a higher low on the recent pullback. This translates into continuation of the bullish trend.
Equities SP-500: Bullish trend remains intact but under consolidation. Nasdaq-100: Building support at 22-week moving average and consolidating. Trend has…
Hopes of a stimulus jumpstarted stocks from yesterday’s losses but were dashed once it became apparent that its passage faces opposition from both sides of the ailse, albeit for different reasons. With Senate GOP leader McConnell…
President Trump announced potential tax cuts on capital gains and income. However, admission from Senator Mitch McConnell that stimulus aid talks were at a stalemate quickly curbed investor enthusiasm…