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Stocks And Bonds Are Due For A Generational Crash Of 75%

Stocks And Bonds Are Due For A Generational Crash Of 75%

From the point of view of history, a reversion to generational lows is inevitable, and a valuation level around 50% of GDP for stocks is a fair target. If we look back to 1981 valuations of stocks and bonds as a guide to valuations at the next generational low, we find stocks and bonds are […]
Chart Of The Day—Punk New Home Sales Versus Record Housing Prices

Chart Of The Day—Punk New Home Sales Versus Record Housing Prices

The Gathering Bond Storm In Chicago

The Gathering Bond Storm In Chicago

Recently the bond rating company Moody’s Investor Service cut their ranking of Chicago to junk status. The move ticked off a lot of people in the Windy City who think Moody’s overstated the case. I agree that Moody’s is wrong… not because they went too far, but because they didn’t go far enough. Chicago is not close […]
The TJX Companies, Inc. Q1 Earnings, Revenue Beat Estimates

The TJX Companies, Inc. Q1 Earnings, Revenue Beat Estimates

The TJX Companies, Inc. (TJX – Analyst Report) is one of the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The TJX Companies operates through four business segments. In the U.S., it operates through two segments, namely, Marmaxx (through stores under the names of T.J. Maxx and Marshalls) and HomeGoods. TJX has been […]
Market Breaks Out To The Upside: Bulls Remain In Charge

Market Breaks Out To The Upside: Bulls Remain In Charge

About a month ago, I discussed the market was approaching an important decision point. To wit: “Since the end of the 2012, coincident with the Federal Reserve’s implementation of QE3, the market has been on an unrelenting bullish trajectory that has defied weakening underlying economic data and market fundamentals. In other words, price momentum has deviated from underlying […]
Residential Building Sector Strengthens In April 2015

Residential Building Sector Strengthens In April 2015

Residential building data is again showing relative strength after the disappointing data from the previous month. The rolling averages are the best metric to view this series – and the rolling averages are now accelerating. This data was above expectations.   Be careful in looking at this data set with a microscope as the potential […]
Leading Indicator Faces Dual Kiss Of Resistance

Leading Indicator Faces Dual Kiss Of Resistance

Copper is often looked at as a leading indicator. Doc Copper has been hot of late! Over the past 90-days, Copper ranks third from a performance perspective (see table below) On a longer term basis, ole Doc Copper doesn’t have much to brag about. For the past few years, Copper has been weak, losing over […]
Timeless Lessons From The Grandfather Of Modern Trading

Timeless Lessons From The Grandfather Of Modern Trading

We often like to refer back to one of the all-time greatest books about trading, Reminscences of a Stock Operator by Edwin Lefevre.  This book was originally published in 1923 and is basically a biography of the famous trader Jesse Livermore.  There are also other Livermore books out there if you are so inclined.  If you are […]
Today’s Market Analysis & Trading Opportunities – May 19, 2015

Today’s Market Analysis & Trading Opportunities – May 19, 2015

Video Length: 00:02:12 1 – Looking at the EUR/USD pair, we believe that this market continues offer call buying opportunities every time we pullback. In the meantime though, we also recognize that the 1.15 level above is massively resistive, so we need to build up momentum to break out finally. We do believe that’s going to happen […]
Tuesday: Euro Drops 1.5% As ECB Promises More Free Money

Tuesday: Euro Drops 1.5% As ECB Promises More Free Money

Bad news is great news!   The Greek talks have stalled, England’s CPI is deflating, German GDP slipped to 0.3% in Q1 and German Investor Sentiment (ZEW) dove to a 5-month low, dropping over 20% in one month to 41.9.  That and collapsing bond prices were the last straw for the ECB, who announced this morning they would “front-load” […]