Market Brief – Friday 11/09/18

Stocks headed down in early trading following strong a strong Produce Price Index report showing producer prices increased +0.6% MoM and +2.9% YoY. Probabilities of a December 2018 Fed rate hike are now at 80% and will likely rise going into December. The tighter monetary policy is, the worse it is for asset prices. Peter … Read more

Market Brief – Thursday 11/08/18

The global economy continues to slow down as Japanese Machine Orders slumped -13.8% MoM, the largest monthly drop in more than two decades. Chinese automobile sales also fell double digits last month, indicating slowing consumer demand. Despite slower global growth, U.S. investors eagerly tried to bid up stock prices and bond yields as if our … Read more

Market Brief – Tuesday 11/06/18

Trading volumes collapsed today as large money managers and traders wait for the election results. Retail investors continue to bid stocks higher based on all the articles showing how stocks tend to rally following midterm elections. While I haven’t had time to go back and look through the data points, I’m guessing not many of … Read more

Market Brief – Monday 11/05/18

Asian equities started the trading week down as China’s Caixin Composite PMI (factory survey) fell to its lowest level since February 2016, when the factory survey was on the edge of contraction. This is an indication we are winning the “trade war,” and also a sign that the Fed’s monetary tightening is affecting the global … Read more

Market Brief – Friday 11/02/18

Don’t get too excited about today’s jobs report even as the BLS reported +250k job created last month. What the media didn’t report is that 248k of those jobs were fictional jobs created under the self-employed birth-death model. The actual number of jobs created was 4,000. Average hourly wages increased 3.1% YoY, sparking concerns of … Read more

Market Brief – Thursday 11/01/18

Experts and analysts are looking to Apple’s after-hours earnings announcement to save the stock market. So far, the earnings from Facebook, Amazon, Netflix, and Google (the other four in the FAANG stocks) have been disappointing. One company can’t hold the stock market up on its own, but Apple’s large weighting in the major indices can … Read more

Market Brief – Tuesday 10/30/18

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