Financial Markets Newsletter

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. […]

Read More

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 […]

Read More

Converged

The stock markets gave back five months of gains in five days this week. As you can see in the long-term chart below, the S&P tagged a trend line from the 2009 low (blue line) which was was rejected and then caused stock prices to crash down to the October 2019 low. One of the […]

Read More

Melt-Up? Melt-Down?

Despite the backdrop of a growing risk to global trade and growth, the S&P 500 refused to breakdown this week. Clearly, the severity of the coronavirus in China increased this week and more trouble is surely ahead for China’s trade partners. So, what is holding up this market? The graph above shows the securities held […]

Read More

Made In China

Actually, the question is what can be made in China given the Coronavirus situation? Chinese authorities extended the Lunar holiday for their workers but that comes to an end on Monday. It is possible that factory workers will quit rather than risk contracting the virus. The only thing to analyze here is the number of […]

Read More

Tapping Out

The S&P 500 tapped a line of resistance for the month of January as you can see in the chart below. The 161.8% Fibonacci extension at the top of the chart is essentially an echo of the 2018 High/Low – so the fact that the S&P 500 was rejected at this level (3,321) is of […]

Read More

Wuhan Woes

Everything is on hold now as we may be on the cusp of a global pandemic due to the outbreak of a highly contagious virus (novel coronavirus 2019-nCoV) spreading throughout China. Cases are beginning to pop up across Asia, Europe and now two in the United States. Over 40mm people in 13 cities are under […]

Read More