Tag Archives: equity markets
Liquidity Expands + Credit Markets Improve = Equity Market Rally
Stock Market Strategy: All signs point to a continuation of the current rally. We will continue to use the direction of liquidity and the behavior of the credit markets as our fundamental guides to equity investing. The primary news story making the rounds today involves the European bank stress test results. I have included the official results and accompanying statement […]
Stock Market Strategy: A Follow Up – Transition From Short to Long
On Friday of last week I outlined a case for impending equity market strength. Please refer to this post titled, Stock Market Strategy: Reduce Shorts Expect Equity Market Rally , for complete details. Today, I would like to review recent news events and the market’s subsequent reaction to see if our bullish call has horns. To begin, I’m going to […]
Stock Market Strategy: Reduce Shorts Expect Equity Market Rally
The Bear is Full Right Now & May Need Time to Digest The Grizzly we stalked in April and found in May has been devouring pathetic bulls for the last six weeks. The time may have arrived for this satiated animal to take a break. Please refer to the chart of the NYSE Composite below for a clear picture of […]
Equity Markets Plummet and Bounce: CNBC Reports a Finger is the Culprit…Q: Index or Middle?
The news cycle is moving almost as fast and furious as the equity markets. I have combined commentary from around the web that I feel best represents the issues we are all facing. Needless to say, the CNBC story suggesting a ‘fat finger’ was the cause of the market chaos we witnessed last week is pure tripe…unless of course they […]
Stalking a Bear or a Windmill? Commodity Prices Surge, Inflation Trade Gains Steam
Is it a bear or a windmill we’re stalking? You may find yourself asking that question as the equity markets drift higher seemingly oblivious to a myriad of negative news. Classic commentary such as “the market climbs a wall of worry” or “the trend is your friend” are being bandied about with increased regularity. Of course, these sayings are useless […]
Healthcare Vote Drives the Equity Markets Higher?! U.S. – China Trade War Brewing
The equity markets move higher responding to the results of the healthcare vote Sunday? If you can’t see through that illogical logic then no amount of reading this blog will help you. Please stop reading this post, don’t pass go and choose a card from the community chest as that seems to be the order of the day. For the […]
Credit Markets Warning Signal, Foreign Demand for US Treasury Falls
The following story represents perhaps the largest obstacle facing equity market integrity today. The previous statement is not hyperbole. The collapse of equity prices in 2008 was presaged by a python-like constriction of credit. If the private sector cannot access credit then business grinds to a halt and as we saw in 2008 economic cataclysm ensues… Credit markets flash hottest […]
Greek Fears Ebb, Gold Advances, Stimulus Demands Grow
Euro zone gives Greece 30 days to show good on deficit – Reuters The tsunami of Greek fear begins to ebb and like proverbial clockwork the US$ drops almost 1%, the equity markets rally over 1% and Gold runs back above the $1100 level up over 1.5%. By now, as readers of this blog, the financial market behavior described above […]
Sovereign Debt Spreads Widen on Greece/Portugal Worries, Equity/Commodity Markets Roiled, Fed Begins to Backtrack
The equity and commodity markets get rocked as Sovereign debt woes resurface. The burning question: Will the dramatic widening of credit spreads in Sovereign debt, beginning to resemble the CDS collapse of 2008 in the private sector, lead to a revisit of a 2008 type credit crisis and all the fallout associated with it?… Greece, Portugal woes intensify – WSJ […]
