Financial Markets Newsletter

Jerome Powell

Sweating Bullets

Jerome Powell gave a speech on Wednesday at the Peterson Institute for International Economics that should have been called, “The Fed Is Out of Bullets”. The speech was a bit sad as the Fed is normally optimistic about about their ability to oil the gears of liquidity and lay the foundation for a recovery but […]

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S&P 500 Futures Chart

FOMO-20

We are on week 5 of going sideways in the S&P 500 with the possibility of moving higher next week. As you will see in the bullet points below, there is plenty of bad news out there as corporations suffer a reduction to revenues and possible solvency issues. Let’s look at a short-term chart that […]

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Technical Analysis of the SPX

Navigating The Reversal

A big news week navigating the Fed, GDP and jobless claims which all indicate a rough year for growth. However, the technical picture in the charts is clear that the rebound wave from the March low is over. As you can see in this first chart, the S&P 500 peaked with an island top in […]

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Mind The Gap: SPX

Fed Fighters

An exciting week in the oil markets this past week as there is no Fed to fight when it comes to delivering a physical commodity like oil. If you own a futures contract on the settlement day then a barrel of oil is delivered to your front door and no, the Fed can’t take delivery […]

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On Deck: Earnings

Earnings reports began this week with the banks (see more below) that dramatically increased loan loss reserves as defaults will spike in the coming weeks. The rest of the S&P 500 will kick-off earnings reports next week where we should get more insight unto how companies are dealing with a global economy at a standstill. […]

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Rebound Resistance

The market crashed in March and its rebound is about to reach heavy resistance as the earnings reports for Q1 start next week. The reaction by the Federal Reserve and US Treasury have been historic as they are providing several trillion dollars of stimulus in a matter of weeks. Is it enough and how will […]

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Chart of the S&P 500 (SPX)

NoWork

The reality of the coronavirus is setting in as we are finally seeing the hard data that portends a deep recession and a lack of work for the average American. The jobless claims over the last two weeks show 10mm people are out of work which implies a double-digit unemployment rate for April. Next up […]

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Chart of the S&P 500 Stock Market Index

Slush Fund 500

The coronavirus is shaping up to be a game changer for the capital markets of the United States. Not only has the Fed unleashed the Kraken with unlimited amounts of quantitative easing but Congress has passed a multi-trillion sized stimulus package to keep consumers and corporations afloat through the government mandated shut-down of the economy. […]

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Act II: COVID Crisis

The throes of a bear market are upon us and it is now apparent to everyone that the equity markets have completed a multi-year uptrend. Perhaps you are aware that this top was inevitable or maybe you think it is a temporary stain that will be wiped away once a vaccine is created. Market cycles […]

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