Market Brief – Tuesday 12/31/19

President Trump announced early this morning he and China will sign a “very large and comprehensive” Phase One trade deal on January 15th and begin negotiating the second phase shortly thereafter. President Xi is not expected to attend. The news immediately sent Treasury yields higher which reversed all of yesterday’s gains. Treasury yields once again … Read more

Market Brief – Monday 12/30/19

Stocks rose in overnight trading after China cut interest rates and reported they will send their chief negotiator to Washington D.C. to sign the first phase of the trade deal. Treasury yields shot up when the European market opened as European investors continue to sell Treasury bonds. Treasury yields closed their last open gap going … Read more

Market Brief – Friday 12/27/19

Stocks gapped higher and Treasury yields gapped lower as investors around the world return to work. Stocks held their overnight gap in early trading and Treasury yields continued to fall in early trading. In overnight trading, Japan’s preliminary Industrial Production for November fell -0.9% and retail sales fell -2.1% from this time last year. China’s … Read more

Market Brief – Thursday 12/26/19

On an expected day of low volume, stocks shot out of the gate on a report out of China and a tweet from President Trump that the “Phase One” trade deal will soon be signed. Treasury yields started the day lower and remained unchanged on the news as the bond market has failed to break … Read more

Market Brief – Tuesday 12/24/19

Stocks were quiet in early trading on what is expected to be a low-trading volume day. Treasury yields initially gapped higher after expectations the Bank of Japan wouldn’t be cutting rates but fell after this morning’s stellar 5-year Treasury auction. Redbook same-store weekly sales fell -3.4% from this time last month but rose +6.2% from … Read more

Market Brief – Monday 12/23/19

Investors shrugged off poor economic news this morning and continued to push stock prices higher on the hope of a reflating economy. Treasury yields fell during Asian markets, rose during European markets and continued to rise in early trading to close the overnight gap lower. Asian and American investors continue to buy Treasury securities, while … Read more

The Fed is Panicking

In December 2015 the Federal Reserve began tightening monetary policy by raising the Federal Funds Rate and later by selling off $755 billion of Treasury securities from its balance sheet over a twenty-two-month period. When the Fed tightens monetary policy, they do so by destroying dollars to curb the effects of inflation, but suddenly the … Read more

Market Brief – Friday 12/20/19

Stocks are in melt-up mode on option expiratory day as downside protection hedges are closed out. Treasury yields rallied again in overnight trading as European investors sell bonds in hopes of inflation while American investors continue to buy bonds as the U.S. economy slows. Personal incomes surged +0.5% in November and personal spending rose +0.4% … Read more

Market Brief – Thursday 12/19/19

Stocks were quiet in early trading as investors ignore any concerns about the House impeaching President Trump to focus on the signing of the “Phase One” trade deal where the terms of the agreement will be released. European investors continue to dump U.S. Treasury securities as they believe Brexit and the “Phase One” trade deal … Read more