Market Rallies Despite Riots Despite protests and riots in 50 US cities over the weekend, and escalating tensions between US and China over trade, territories and capital wars, the falling USD is helping equities stay bid. Further evidence to support buying can be found from reports of opened retail brokerage accounts past two months and […]
Buyer of Last Resort Fed meets and releases their FOMC minutes today. Some are expecting a negative interest rate announcement. I’m not, but I’m thinking about what it means when they do go negative. More likely, when they need to step in again to backstop falling equities, they will announce ‘yield curve control‘ to start. […]
Inflation/Deflation This is one of my Intermarket Tells I spy for sector rotation: The Inflation/Deflation Ratio by Martin Pring To clarify: Deflation-sensitive stocks include industry groups such as banks, insurers utilities versus inflation-sensitive stocks of mainly mines and energy stocks. A rising ratio is inflationary and is typically conducive to buying metal and mining companies. […]
Debt bubbles are deflationary – as presented in this recent client post: Guest Captain Commentary – Lacy Hunt. Policy response to try and mitigate a rising debt bubble is inflationary. The point of me framing this up front is to set up the applicable time-frame for trading and investment decisions: now versus sometime in the […]
Last weekend I showed why I was still “Bullish into Earnings” and my Intermarket Chart Attack: April Sun further supported my thesis for a “bullish impulse”. Last Monday I highlighted my focus for the week: Monday Twist: Expecting a Sold-to-You rally this week on Momentum names before rotation into Value names next few weeks. Sector Watch: […]
It’s been a long winter for many – whether confined to our domicile or just unable to travel freely. April may bring some surprise relief as we get more mobility, better weather for those of us in cooler climates, and a respite from the dire headlines and market narrative. These are the charts I will […]
Macro Matters Below I include a Guest Captain Commentary that dovetails perfectly with my Macro thesis. Practically every word of Steve’s missive I support (bolded emphasis/red highlights mine), as I have repeatedly called out in my market analysis for clients. Further, I believe the following five themes frame the backdrop of challenges to our economy and […]
