Financial Markets Newsletter

Trends in the S&P 500

Swells of Uncertainty

The waves of uncertainty are washing ashore as the path to 2021 is unclear. On one hand we are experiencing an economic recovery but on the other is a second wave of coronavirus cases (overseas and domestic) that may reverse the economic recovery over the past few months. There are drug companies manufacturing a vaccine […]

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The Fly

The Fly on Mike Pence’s head during the Vice-Presidential debate was the most exciting thing that happened this week. In turn, the S&P 500 continued its breakout from the falling wedge pattern in the chart below – a slow and steady climb. The technicals are not showing many negative signs and are indicating that a […]

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Fighting a Pandemic

A week of fatigue as the prospects for the economy, a vaccine and the petulant political landscape came to a convergence. It won’t last forever but it sure feels like that at times. Remarkably, the stock and bond markets have held up and are riding the wave of liquidity provided by central banks and governments […]

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S&P 500 Index September 2020

Navigating the Waves

There are waves of uncertainty circulating the news cycle every day. Presidential election, economy, recession, recovery, Fed policy, housing, riots, coronavirus, vaccinations and it gives everyone a headache. It is tough to get clarity on these matters these days and the stock has certainly reflected this sentiment these past three weeks. Many are calling for […]

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S&P 500 Vs Volatility

Power Brakes

All of the major indices had a rough week as the NASDAQ led the way lower with a loss of 4.1% – the worst week since March. However, the momentum to the downside abated into Friday’s close and volatility did not spike this week like we saw in the steep sell-off in March. In the […]

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The S&P 500 Index vs 30 Yr Treasury Yields

Perma-Fed

The Chairman of the Federal Reserve announced a change to how policy is conducted with regards to inflation which the market interpreted as lower for longer. Under this methodology, the interest rate increases which began in 2015 would have never happened. With rising inflation expectations due to monetary expansion (quantitative easing) and exploding deficits, the […]

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S&P 500 Trendline

Summer to Fall

Summer trading is rounding third base and so might this rally from the March low. The size of the rebound does not match the recovery in the economy as stocks have front-run a return to normalcy. As we approach the seasonally weakest part of the calendar, the market will need to wrestle with the uncertainty […]

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