Important Market TOP Forming? The charts have turned VERY ugly even as the news remains relatively benign. It’s tempting to blame the recent market volatility on the ups and downs of the prospects for a US/China trade deal. The timing of the sudden market plunge points the finger squarely at Trade Tensions. “Trade Tensions […]
Triple Peaks For Stocks? Market conditions seem to have turned on a dime. Just 6 trading days ago, several major indexes were grinding to new highs and threatening to go much higher. Then came the flare-up in Trade tensions with China and suddenly the health of the markets took a nasty turn for the worse. […]
New Market All Time Highs Dead Ahead and More Trades For the Next Leg The notion that the Federal Reserve is stoking another Asset Bubble looks more correct every single day. “Federal Reserve Stokes Another Asset Bubble”. (https://markonomics101.com/2019/03/22/federal-reserve-stokes-another-asset-bubble/). First the Cryptocurrencies resurrected. “Cryptocurrency Sector Explodes Higher”. (https://markonomics101.com/2019/04/06/cryptocurrency-sector-explodes-higher/). Bonds are already near their all time […]
Trades for The Next Leg Up in the Bull Market After the frightening plunge in Stocks on Friday, the action today could NOT have been better. Major equity indexes, which spent most of the day lower, closing in positive territory. Even more encouraging was the Russell 2000 Small Cap Index (RUT) which was the […]
The Incredible NON-Credible Fed Three months ago, the Federal Reserve expected to raise interest 3 times in 2019. At the conclusion of the Fed Meeting on March 20th, the Fed announced that it expects NO rate increases as far as the eye can see. Chairman Jerome Powell also announced a MUCH earlier termination of […]
Deja Vu All Over Again? In 2018, the Nasdaq 100 (NDX) led the other indexes to ALL TIME HIGHS. In 2019, the NDX is leading the other indexes to NEW ALL TIME HIGHS. Nearly the entire gain in the NDX through its highs in October of last year was concentrated in just 4 stocks. […]
Stocks And Bonds Diverge It wasn’t that long ago the markets anticipated a substantial economic slowdown. The 20% or so plunge in equities was coupled with a sizable drop in Treasury Bond Yields. Something odd is going on. Most key equity indexes are approaching all-time highs. Bonds yields, on the other hand, are breaking […]
Rounded Bottoms For Many Stocks and Sectors There is increasing evidence that the sharp and short BEAR MARKET of 2018 ended on Christmas Eve. Until recently, the rally had the hallmarks of a typical BEAR MARKET rally: excruciating volatility, illiquidity, and poor volume. For more on the characteristics of BEAR Market rallies: “Characteristics of […]
The Fed’s Functions Since it was established in 1913 to be the Central Bank of the United States, the objectives of the Federal Reserve have changed. Originally, the main job of the Fed was to enhance economic and price stability to lessen severe economic swings. Since then, its mission has been amended over the years, […]
Post-Christmas Rally Stalling The stock market has been on a tear since Christmas. In the last 19 trading days, the Dow Jones Industrials (Dow) have gained 2800 points or nearly 13%. Other key indexes have generated equally impressive gains: Nasdaq 100 (+13.5%), Russell 2000 (+15%) and S & P 500 (+12.5%). The belief that a […]
