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Dow Dumps 450Pts – Erases Tuesday’s Gains, Breaks Below Critical Support

Dow Dumps 450Pts – Erases Tuesday’s Gains, Breaks Below Critical Support

Well, that de-escalated quickly… We guess Tuesday’s “biggest short squeeze” since the US election has run out of ammo. Busting back below critical technical support… Oh and Yuan is crashing…
U.S. Treasuries – Where Will They Go?

U.S. Treasuries – Where Will They Go?

U.S. Treasuries – Fundamentals Of The Treasury Market The long bond sold off sharply from the end of August until September. It has been steady in October. The question is where it moves next. Personally, I look at the bond market as a signal of the economy. From that, I use my opinion of the economy […]
Italy Bond Yields Surge In Confrontation With ECB President Mario Draghi

Italy Bond Yields Surge In Confrontation With ECB President Mario Draghi

Mario Draghi warns “Undermining EU budget rules carries a high price for all”. Italian bond yields surged. Mario Draghi did not mention Italy by name, but his threat Undermining EU Budget Rules Carries High Price For All was well understood by the bond markets. Speaking to European Union leaders at a summit devoted to euro zone integration, […]
Federal Reserve Independence – Under Attack Again?

Federal Reserve Independence – Under Attack Again?

The last few days, President Trump has made inflammatory and in some instances misguided remarks as to the nature of current Fed policy, its impact on the stock market and potentially on the economy. Examples follow: “It is a correction (the decline in the stock market) that I feel is caused by the Federal Reserve.” […]
Secular Trends In Residential Building Permits And Housing Starts – Thursday, Oct. 18

Secular Trends In Residential Building Permits And Housing Starts – Thursday, Oct. 18

Yesterday, we reported separately on the latest residential building permits and housing starts in the government’s monthly report, courtesy of the Census Bureau and the Department of Housing and Urban Development. Despite the fact that both are monthly SAAR series (seasonally adjusted annualized rate), they are exceptionally volatile and subject to extensive revisions. Thus it is unwise to assign […]
How Gibson’s Paradox Has Been Buried

How Gibson’s Paradox Has Been Buried

Until the 1970s, all recorded history showed that bond yields were tied to the general price level, not the rate of price inflation as commonly believed. However, since then, the statistics say this is no longer the case, and bond yields are increasingly influenced by the rate of price inflation. This article explains why this […]
3 Cyber Security Stocks To Focus On Following Facebook Breach

3 Cyber Security Stocks To Focus On Following Facebook Breach

Cyber-attacks have become recurrent with major corporate giants falling prey to criminal hackers. The recent Facebook (FB – Free Report) security breach has been the talk of the town since September when the company announced that accounts of about 50 million users were hacked. Last week, Facebook reported that the graveness of the attack was less than what the […]
Netflix Plunges – Erases Post-Earnings Gains

Netflix Plunges – Erases Post-Earnings Gains

Netflix and spill… NFLX is now down 15% from post-earnings highs. Perhaps one of the machines actually noticed the company’s biggest quarterly loss ever?
In Search Of The Allegedly Steepening Yield Curve

In Search Of The Allegedly Steepening Yield Curve

There has been a lot of commentaries recently about the steepening yield curve. Let’s investigate with pictures. The chart shows the spread between the 10-year treasury yield and the two- and five-year treasury yields. The steepening is hard to spot so let’s hone in. Detail of Yield Curve Steepening   Wait a second you say. […]