Market Brief – Thursday 1/31/19

The Fed is leading investors to slaughter, as economists, large-money managers, and the financial media is proclaiming the Fed is going support asset markets, even though nothing changed regarding the Fed’s monetary policy since their December meeting. The Fed was not expected to raise interest rates, nor were they expected to make any changes to … Read more

Market Brief – Wednesday 1/30/19

US equity markets started higher as Boeing smashed earnings expectations, which sent their stock back near its all-time highs. Today the Federal Open Market Committee (FOMC) announces their monetary policy guidance, so any early moves in stocks should be ignored until after the press release at 11 a.m. PST. The stock market is expecting the … Read more

Market Brief – Tuesday 1/29/19

After heading lower in overnight trading, the broad equity market started the day higher as investors hope for a dovish Fed and an end to the trade war this week. The bond market is not confirming the equity market, as Treasury yields headed lower. Since stock prices tend to follow Treasury yields, the bond market … Read more

Market Brief – Monday 1/28/19

Stocks started and ended the day lower as the People’s Bank of China (PBOC) chose not to inject any currency into their financial system last night. Despite poor earnings reports from Caterpillar and Nvidia, U.S. investors eagerly bought stocks on the hopes the Federal Reserve will back off their balance sheet unwind. Wednesday morning Fed … Read more

Bull Market or Bull Trap

The financial media seems overjoyed as they proclaim the Bull market is back and investors couldn’t be more excited, as they eagerly plow currency back into stocks after running to cash in December. Even former Federal Reserve Chair Janet Yellen has chimed saying, “Bull markets don’t die of old age.” After nearly ten years into … Read more

Market Brief – Friday 1/25/19

Asian markets kicked off today’s rally as China injected $25 billion of currency into the markets and the European Central Bank followed up with an injection of their own. Central bankers are desperate to keep stock prices up as the global economy continues to slide due to the decline in world dollar liquidity, courtesy of … Read more

Market Brief – Thursday 1/24/19

The global slowdown has hit Germany, where their manufacturing PMI contracted. While this did not deter US investors from buying stocks in early trading, Treasury yields fell across the board as foreign investors sought safety. The EIA reported crude inventories: Crude: 7.970M Cushing: -0.190M Gasoline: 4.050M Distillates: -0.617M. Levels were well above expectations, and the … Read more

Market Brief – Wednesday 1/23/19

News from Japan last night saw a -3.8% YoY drop in exports along with a -7.0% YoY drop in exports to China. Now Japan, Korea, China, Singapore, Thailand, and Indonesia have all reported declining exports. To make matters worse, Japan posted a -18.3% YoY decline in Machine Tool Orders, which based on its relationship with … Read more

Market Brief – Tuesday 1/22/19

US equities followed Asian and European equities lower as investors slowly come to grasp that lower foreign exports are due to lower domestic demand. Treasury yields were also lower in early trading after tagging overhead resistance on Friday. Existing home sales fell -6.4% MoM with analysts expecting a mild -1.5% decline. On a year-over-year basis, … Read more

Market Brief – Monday 1/21/19

Asian and European markets are open, while US markets are closed for Martin Luther King Jr. Day. South Korean exports, a guide for global economic growth, fell -14.6% in the first twenty days of 2019, compared to the same period in 2018. South Korean exports to China fell -22.5%, indicating the Chinese economy may not … Read more