The DOW made a new high all by itself on Friday while the other indices hit a wall on Thursday in what might be an interim top for the next few weeks. The Dow was up 1.16% for the week, but both the S&P 500 and the NASDAQ Composite closed lower. A sign of exhaustion […]
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The Summer Trade Continues
The market has had a nice run these past few weeks with a slow and steady move higher. The markets are digesting earnings as 84 of 500 S&P companies have reported aggregate EPS growth of +11.8% verses 2016. The earnings reports will get heavier over the next two weeks and the market will be looking […]
Equities Start to Heat Up
Its summertime and I know you are all busy playing golf, tennis, swimming, beaching or just relaxing and having an afternoon cocktail so I won’t take up a lot of your time, today. The stock market has looked good these past two weeks as we’ve showed signs of making new highs led by the technology […]
No Fireworks for Stocks
It’s been two weeks since my last update and you all didn’t miss much except a few volatile sessions in stocks. No fireworks like we got on the fourth of July, see for yourself in the chart below of the S&P 500 ETF: The one notable movement we got was in the yield curve […]
Getting Close to an All-Clear
Markets have been choppy and corrective for most of 2017 but we may be seeing signs of that changing as the NASDAQ recovered from its breakdown in early June while the DOW has continued to show it remains in an uptrend. The small caps didn’t do much these past few weeks but they may be […]
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 […]
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, […]
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 […]
GDP, Corporate Spending & Policy
The breakdown in stocks on 5/17 was not the beginning of a larger sell-off and now we are back to making new all-time highs in the S&P 500 and NASDAQ. The DOW and Russell 2000 (small caps) have yet to show a turnaround so we may be starting a new upturn but I would like […]
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 […]