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Market Brief – Monday 7/26/21

Stocks were flat in overnight trading and up slightly in early trading as investor enthusiasm to take stock prices higher is waning today. Treasury yields fell in overnight trading but investors wanted none of that as they sold yields back up to Friday’s closing level. New home sales fell -6.6% in June for the third … Read more

Nationalization of Money Markets

At the current pace, it is likely the Fed could nationalize the entire money market system through its Overnight Reverse Repurchase Program (ONRP). The Fed’s hostile takeover of money markets is not a reason to panic if you have money market accounts. The implications of the Fed’s actions are not due to a structural problem … Read more

Market Brief – Friday 7/23/21

Stocks rose in overnight trading and continued higher in early trading. Treasury yields reversed yesterday’s decline in overnight trading and were fighting to hold their overnight reversal. The preliminary Markit Manufacturing PMI showed the manufacturing sector is expanding at a slightly faster rate in July while the Services PMI showed the services sector is expanding … Read more

Market Brief – Thursday 7/22/21

Stocks started the day slightly higher but were unable to gain much traction in early trading as small caps were heading lower. Treasury yields were flat in overnight trading and heading lower in early trading. Initial claims rose +419k last week and total claims, including all forms of Pandemic Unemployment Assistance, fell -1.262 million to … Read more

Market Brief – Wednesday 7/21/21

Dip buyers continue to be rewarded for their efforts as stocks rose in overnight trading. Treasury yields also rose in overnight trading, with 30-year Treasury yields moving over 1.9% as sellers double down on their inflationary bets. Mortgage applications fell -4.0% last week as purchase applications fell -6.4% and refinance applications fell -2.8%. The Department … Read more

Market Brief – Tuesday 7/20/21

Stocks started slightly higher and buyers were lined up at the opening bell to drive stock prices higher in early trading. Treasury yields fell in overnight trading and sellers aggressively drove yields back up with 30-year Treasury yields touching just over 1.85% in early trading. Building permits fell -5.1% in June to 1.598 million permits. … Read more

Market Brief – Monday 7/19/21

Stocks and Treasury yields fell sharply in overnight trading but buyers were eager to buy the dip in equity prices as stock prices were rising off their morning lows in early trading. Treasury yields extended their decline until sellers attempted to push back. The National Association of Home Builders Housing Market Index fell to 80 … Read more

The Fed is Bailing Out the SEC

With the collateral shortage expected to balloon into the trillions over the next couple of months, the Fed appears unconcerned. Every night, approximately $700-800 billion in cash is loaned to the Fed in exchange for Treasury securities to pull all of this excess cash out of the financial system to provide the necessary collateral. Upon … Read more

Market Brief – Friday 7/16/21

Stocks started the day higher but sellers were lined up at the opening bell as prices fell in early trading. Treasury yields rose in overnight trading with 30-year Treasury yields moving just over 1.95% but buyers were waiting at market open as yields were falling in early trading. Retail sales rose +0.6% in June and … Read more

Market Brief – Thursday 7/15/21

Stocks and Treasury yields fell in overnight trading and while stocks were mostly flat in early trading, sellers were trying to push yields back up. Initial claims fell to +360k last week and total unemployment claims, including all forms of Pandemic Unemployment Assistance, fell -372k to 13.836 million. Export prices rose +1.2% in June and … Read more