Global stock markets got a boost as U.S. stocks were technically oversold and China is indicating they will stimulate their economy. The last time China stimulated their economy was back in 2016 when they used their foreign currency reserves to pull the global economy up as it was about to enter a recession. China doesn’t … Read more
Stocks started out the day surging higher as investors look to “buy the dip” in stocks as the market is flashing “oversold” conditions on a short-term basis. For the past several years buying the dip has been profitable, but right now it isn’t working. When examining trading volumes, I noticed that as stocks have sold … Read more
On what is being billed as a critical week for U.S. stocks, equities lurched in early trading after European equities were up and Asian equities were mostly down. The Fed’s preferred inflation gauge, or Core PCE, showed inflation held at +2.0% for September. Treasury yields faded their early move higher as inflation expectations moderate. Personal … Read more
The U.S. stock market is facing a critical week as the major indices are heading towards correction territory. Bulls are hoping seasonality comes into play, as stocks tend to rally following midterm elections and into the holiday season. They are also looking forward to corporate share buybacks resuming as the blackout period begins to fade. … Read more
The Money Supply Flashes Red (Again) For the second time in the past twelve months, the growth rate of the money supply has fallen below a critical level where historically the economy experiences recessions and worse, depressions. Our economy is built on the continuous expansion of money, or more accurately—credit. If the amount of public … Read more
If there was ever a day the stock market needed to rally, then today is that day. With the major indices giving up their gains for the year and all below their 200-day moving averages, a bearish signal, leveraged investors likely received delinquency notices from their brokerage firms last night. A delinquency notice, or margin … Read more
Stock prices are a function of liquidity, or how much money is sloshing around the financial system, and not earnings. Even though earnings are positive, stock prices are falling due to a lack of liquidity. Even with the lack of liquidity, stock prices are trading well above where they should be based on their earnings. … Read more
Following a global routing of stocks, U.S. stock indices opened below their 200-day moving averages, which are key technical levels investors watch to determine the strength in a market. When a security continuously trades below its 200-DMA, it is considered a bearish signal. Buyers stepped into the markets early to take advantage of this drop … Read more
The S&P 500 closed below its 200-day moving average for the second day in a row. Retail investors continue to buy, as they believe this recent weakness in the stock market is a buying opportunity. Large investors are selling to the retail investors, which is evident by the increase in trading volumes. The other factor … Read more
Next week approximately 150 S&P 500 companies are expected to announce their third-quarter earnings. Forward earnings guidance hasn’t been overly bullish, with fourth-quarter earnings expected to see a sharp deceleration as the global economy slows down. Also next week the U.S. Treasury will auction off $276 billion of debt, which is believed to be the … Read more