Financial Markets Newsletter

The Great Unwind Begins

The Fed raised interest rates this week and finally gave a signal that they will let their $4T portfolio of treasury and mortgage bonds run-off in what begins the great unwind of their ultra accommodative monetary policy. This policy started in 2008 amid the financial crisis and begins its ending in 2017. The unwind process […]

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The Spasm of the NASDAQ

Volatility emerged from the NASDAQ as one month’s worth of gains was wiped out in less than five hours on Friday. The breakdown emanated from its largest components which have largely been responsible for its YTD gains. Many of the same names have driven both the NASDAQ and the S&P 500 higher for 2017: Apple, […]

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Summer is Coming

There are many trigger point to discuss regarding risk but sometimes the market doesn’t care and it goes higher. We did get some good news with the Q1 GDP revision and recent economic data that points to business investment accelerating which is needed to grow the economy. GDP prints in Europe seem to be picking […]

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Convergence On Deck

If you have been reading my posts these past few weeks you weren’t surprised by the breakdown in stocks on Wednesday. The technicals have been weak as fewer and fewer stocks have been responsible for pushing the broader indices higher and higher. We had a good snap-back on Friday as Wednesday’s pullback created a very […]

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Waiting for Convergence

Let’s review, the Trump stock market rally ended in early March and has continued to behave in a corrective manner that is likely to resolve itself in the next week or two. Earnings season is 90% finished and the results were largely in line with an improved Q2 GDP over a weak Q1 – not […]

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French Election Results on Tap

A pretty quiet week in terms of price action as the indices remain in a divergent situation as the small cap index (Russell 2000) is confirming lower prices are coming (see Chart Time!). The French election results will dominate the news cycle on Monday but I don’t expect any surprises so its likely markets shrug […]

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