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In A Booming Economy, You Buy And Build Houses

In A Booming Economy, You Buy And Build Houses

We can add realtors to the list of those who are angry with Jay Powell. The housing market continued its perplexing slump in October, according to a broad section of data encompassing everything from construction to sales of existing homes. We have been told since Economics 101 that the central bank is, well, central, therefore […]
Tariffs And Quotas: Who Gets The Money

Tariffs And Quotas: Who Gets The Money

The NYT reported that the Trump administration is considering replacing the tariffs is imposed on aluminum and steel imports from Mexico and Canada If the U.S. imposes a tariff on an import then it is effectively imposing a tax on U.S. consumers. The government gets to keep the revenue. with a system of quotas. There is an important […]
AUD/USD Outlook: Aussie Searches For Support After Failed Breakout

AUD/USD Outlook: Aussie Searches For Support After Failed Breakout

The Australian Dollar has fallen more than 1.5% against the US Dollar from the recent three-month highs after failing to hold above yearly slope resistance. We’re looking for a low near upcoming support targets to identify whether this is just a correction or the resumption of the broader downtrend. These are the updated targets and invalidation levels that matter […]
US Markets Focus – Lack Of A Santa Claus Rally

US Markets Focus – Lack Of A Santa Claus Rally

Allison Ostrander, Director of Risk Tolerance and Options Trader Specialist at Simpler Trading joins me to discuss the factors holding the US markets back. While it’s not too late for a Santa Claus rally it does need to start soon or else all the remaining bulls will join the bearish camp. As for volatility, it […]
Yet Another Plunge In Crude: Down 7 Straight Weeks And Negative From Year Ago

Yet Another Plunge In Crude: Down 7 Straight Weeks And Negative From Year Ago

Crude is down nearly another 7% today. It’s down 33% since the September high and 13.5% from a year ago. Weekly West Texas Intermediate Chart WTI Monthly Chart Stockcharts does not have intraday prices but it does have nice looking charts. The chart shown does not have today’s plunge. There could be a bounce at […]
3 Reasons Why Companies Cut Their Dividends

3 Reasons Why Companies Cut Their Dividends

The primary goal of dividend growth investors is to generate a rising stream of dividend income over time. With this in mind, dividend cuts are a dividend growth investor’s worst nightmare. Fortunately, there are actionable steps that investors can take to reduce their chances of experiencing a dividend reduction. To understand these steps, we must […]
BofA: The Triggers For A “Big Fed Panic” Are Forming

BofA: The Triggers For A “Big Fed Panic” Are Forming

Referring to what has become our favorite chart of 2018, in his latest Flow Show report, BofA’s Michael Hartnett reminds his readers that Fed tightening cycles always end with financial “event” observing that much as peak liquidity in Q1 coincided with peak returns & trough volatility, “peak volatility & trough returns will coincide with Fed […]
At The Midpoint, MiFID II Has Cut 20% Of European Equity Revenue

At The Midpoint, MiFID II Has Cut 20% Of European Equity Revenue

With Europe’s Markets in Financial Directives (MiFID II) approaching its one year anniversary this January 3, the concerns that the sweeping regulations designed to increase transparency and diversity are, paradoxically, going to disrupt markets has thus far been proven unfounded. It has added complexity in some regards and attempted to detach investment research cost from investor gains, among other goals. […]
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                        Visualizing The Bear Market In FAANG Stocks

EC Visualizing The Bear Market In FAANG Stocks

What goes up, must come down. Over recent years, there hasn’t been a safer bet than big tech – specifically the FAANG stocks, which include Facebook, Apple, Amazon, Netflix, and Google’s parent company Alphabet. But in the financial world, this feeling of euphoria can be turned upside-down very quickly. Since the summer, the five tech […]
Netflix Isn’t Done Falling

Netflix Isn’t Done Falling

Having already lost 40% of its value, and with a price/earnings ratio of “only” 96, it may seem that Netflix is an absolute steal right now. I don’t think so, which is why I remain short this security. Looking at this year, you can see the well-formed reversal pattern that has formed: Looking at the […]