Tag Archives: Stock Market

The United Socialist States of America (USSA)

You’d think the Fed governors would have the sense the political problem they are creating for themselves.  Pumping up the stock market — supporting corporate bonds will do that —  while Main Street suffers is a recipe for sweeping changes … Continue reading

Posted in Fed, Uncategorized | Tagged , , | 11 Comments

Chasing The FOMO Titanic Rally

FOMO – (Fear Of Missing Out) Panic buying is a type of behavior marked by a rapid increase in purchase volume, typically causing the price of a good or security to increase. From a macro perspective, panic buying reduces supply and creates … Continue reading

Posted in Economics, Equities, Uncategorized | Tagged , , | 27 Comments

Bad Look Of High Stock Prices & High Unemployment

In a few hours, the BLS will release the employment situation for April, which will illustrate the devastation the COVID crisis has inflicted on the U.S. labor market.  Since the crisis began 30 million plus American workers have filed for … Continue reading

Posted in Economics, Economist, Politics, Uncategorized | Tagged , , , | 14 Comments

Too Short To Get Shorty

The stock market is clearly detached from economic reality and unmoored from any sensible valuation metric but it just keeps going higher. ¿Por qué. The market is going up because so many are caught offside betting it’s not going to … Continue reading

Posted in Equities, Uncategorized | Tagged , | 6 Comments

The Fed Cut Fails To Inspire As Markets Deliver A Policy Margin Call

The price action in stocks continues its remarkable volatility. The cash S&P500 traded in a 160 point range just today, or 5.4 percent.   They sold the Fed 50 bps emergency cut hard to close the S&P at 3003.37, down 2.8 … Continue reading

Posted in Equities, Uncategorized | Tagged , | Leave a comment

Are We Cheap Yet?

One helluva weak week for the stock market.  Three of the five largest Dow point flops in history.  Yes, we have already been lectured like a little schoolboy by the Twitterati geniuses “it is the percentage drops that count.”  No … Continue reading

Posted in Black Swan Watch, Economics, Uncategorized | Tagged , , , | 17 Comments

Stock Market Returns And Presidents – Beware Of Averaging

We have warned about looking at averages (see here), especially with such skewed distributions and how a couple outliers can greatly distort this most common statistical metric. Real Life Macro Economy Example:  2019 Q1:  Average U.S. Household Wealth =  $803.3K … Continue reading

Posted in Equities, Politics, President Trump, Uncategorized | Tagged , , | 3 Comments

Beware Of The S&P’s Doji City

In our Saturday post,  Heads Up! Friday’s Rare S&P Shooting Star Candlestick,  we pointed out the S&P500 had formed a rate shooting star Doji candlestick on Friday with price action that had been observed only once since 2010, last Halloween day. Run don’t … Continue reading

Posted in Equities, Uncategorized | Tagged , , , | 1 Comment

Beware Shorting Impeachments

Reposting a piece from a few years back to provide some market perspective on today’s news.  There are a confluence of events, not just political instability, of why we believe stocks are headed lower, including valuations and the shifting of … Continue reading

Posted in Politics, President Trump, Uncategorized | Tagged , , | 2 Comments

Why Did Stocks Fall After Rate Cut?

Gravity.  Stock prices are waaay too high. Stocks went down not because the Fed messed up.  If they needed to cut 50 bps and signal more to come because of coming economic weakness, what in heavens name were stocks doing … Continue reading

Posted in Equities, Politics, Uncategorized | Tagged , , | 3 Comments