Financial Markets Newsletter

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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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 […]

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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 […]

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