Category Archive: Finance
2017 Sector And Asset Class Correlations
Below is a matrix that shows the correlation between the daily price changes (%) of various sectors and asset classes so far in 2017. The closer the reading is to 1, the more correlated the pair. The closer the reading is to -1, the more negatively correlated the pair. Readings near 0 mean the pair […]
This Sucker’s Going Down
Thirty years ago the market crashed 23% in one day. It’s everyone’s worst nightmare – seeing their savings get cut in a quarter overnight. This is obviously traumatic so it’s rational to worry about such an event. There are important lessons in big traumatic events like this so let’s dive deeper. I have a simple […]
Stocks Rally Ahead Of Earnings Season
A persistent theme this year has been stocks surging to record highs during each quarterly earnings cycle. The first three quarters of 2017 earnings have seen a series of 6 week explosions to the upside: February, April/May and July. In fact, removing these three 6 week surges would leave the stock market completely flat for the […]
Litecoin Price Setup Still Bullish
Litecoin price, just like other leading cryptocurrencies, had a rough time this week. Ethereum price dropped as low as 287 USD, Bitcoin traded above 5800 USD to shed almost a 1000 USD in less than 48 hours. The question remains the same, for Litecoin and for other leading Cryptocurrencies: Is it a Bubble? Will Cryptocurrencies survive the wave […]
Sinking The Titanic: Apple Inc. Stock Weighs On Indices, Bulls See Opportunity
Apple Inc. (AAPL) stock sank on Thursday, dragging the rest of the markets down with it. The iPhone maker’s shares tumbled by nearly 3% to fall as low as $155.02 in heavy trading. By afternoon, nearly 30.3 million shares of Apple stock had changed hands, versus the average daily volume of 28.24 million shares. The S&P 500 […]
Healthcare ETFs Head To Head: XLV Vs. VHT
The healthcare sector has been in the spotlight lately. President Donald Trump targeted drug companies and accused them of charging extremely high prices. Market Movers “Prescription drug prices are out of control. The drug prices have gone through the roof,” Trump said in a meeting, adding, “The drug companies frankly are getting away with murder. […]
Officially A No-Growth World
I really don’t think people quite understand just how much trouble China is in right now. That’s no mystery because in the Western media the Chinese economy is almost always described as somewhere between awesome and magnificent (only slight hyperbole). Their government, on the other hand, is not fooled. General Secretary Xi Jinping opened the […]
Calm Before The Storm
In light of the 30-year anniversary of the Black Monday Crash in 1987 (when the Dow lost more than 20% in “one day”), we should be reminded that investor anxiety usually increases when markets get to extremes. If stock prices fall steeply, people fret about money lost, and if they move too high too fast, they […]
October 2017 Philly Fed Manufacturing Survey Improved
The Philly Fed Business Outlook Survey improved and remains in expansion. Key elements are in expansion but declined. Analyst Opinion of the Philly Fed Business Outllook Survey Consider this a weaker report than last month because of the decline of the key internals. This is a very noisy index which readers should be reminded is […]
Buy-The-Black-Monday-Echo-Dip – Stocks Dip & Rip After China Bubble Warnings
pic.twitter.com/g4EjXXJofL — StockCats (@StockCats) October 19, 2017 Saved…” NOTE: Before we start – something went very funky in the last couple of minutes of the market today – TRUMP SAID TO BE LEANING TOWARD POWELL FOR FED CHAIR: POLITICO – a Dovish pick… For a brief moment there this morning, some reality poked its head […]
