Financial Markets Newsletter

Six More Weeks…

The financial markets had their version of Groundhog day this week as the market was looking for a signal to keep pushing stocks higher or retreat to lower prices. We opened the week with an unexpected gap down in stocks which created what is called an “island reversal” which denotes weakness in an uptrend and […]

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Looking for a Catalyst

An activist government is hard at work for the first time in many years. It will be several months before we see traction with regard to trade, GDP or jobs as the President continues his efforts to rebuild the middle class by cajoling the private sector to build in America. February should bring more clarity […]

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2016 Year in Charts

This piece is a year in review of the financial markets using primarily charts. Most year in reviews are the equivalent to a thesis paper in college that takes hours to read through so I will stick to the charts with a bit of commentary. The charts you will review are long-term charts that show […]

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ECB Provides Stimulus

Super Mario Does It Again The European Central Bank (ECB) and its head banker, Mario Draghi, unveiled a series of new measures by expanding their quantitative easing package and cutting its benchmark interest rates to record lows. The ECB raised the amount of bonds the eurozone’s central bankers buy each month under their quantitative easing […]

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Rally Continues

Psychology during bear market rallies seems to follow a fairly consistent pattern. “During secondary reactions [upward] in bear markets,” wrote DOW Theorist Robert Rhea in the 1930’s, “it is a fairly uniform experience for traders and market experts to become very bullish.” The U.S. markets moved higher over the past week right up until 2pm […]

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“V” for Victory!

Last week was a wild ride for equities as the S&P 500 bounced on the August 2015 low and moved higher through the end of week. (See chart below.) Central bankers in Europe and Japan hinted at further stimulus measures on Wednesday and Thursday, which propelled global stock markets sharply higher into the close on […]

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