EC Four Takeaways From The Q2 Earnings Season
Earnings reports are front and center this week, with more than 800 companies coming out with quarterly results, including 183 S&P 500 members. With results from 97 S&P 500 members already out, as of Friday, July 21st, we will have crossed the halfway mark by the end of this week. The results thus far provide […]
Volatility, Skew, And The Trade For Next Week
Stocks end the week on a quiet note as they rallied up to the upper weekly expected move in the Nasdaq and S&P 500. In this weekend’s crucial market update video we look in-depth at the historical record low volatility. Volatility is how traders generate returns in the market. Many of the big banks are […]
Canadian Dollar: Don’t Fight The Trend
Talking Points: The downward trend in USDCAD remains intact. Data on Friday showed core inflation rising and buoyant retail sales. A further Canadian interest rate rise in October now seems more likely than not. Fundamental Forecast for CAD: Bullish Ever since the Bank of Canada raised its overnight lending rate by a quarter of a percentage point to 0.75% […]
E Financial Forecasts – Myth Or Reality?
During a recent trip from San Francisco to Ohio, I spent several hours indulging in the Wall Street Journal, cover-to-cover. Fascinated by their second quarter Markets Review & Outlook Section on July 3, 2017, I fervently read the predictions made by pros compared with reality. I assumed that at least one prediction for the markets […]
10 Best Stocks For Value Investors This Week – 7/22/17
I evaluated 38 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. I also put each company through the ModernGraham valuation model based on Benjamin Graham’s value investing formulas in order to determine an intrinsic value for […]
Overvaluation Is NOT Due To Passive Investing
There’s been a lot of words thrown around lately saying that indexing has been leading to overvaluation of the US stock market. I’m here to tell you that is wrong. I have two reasons for that: 1) Active managers have been pseudo-indexing for a long time. The moment they get benchmarked to an index they […]
Earnings Still Matter
One of the most important new trends is that stocks are becoming more volatile during earnings season. As you can see from the chart below, earnings moves are 4 times the size as the average daily move. The most obvious explanation that many give for this is the prevalence of ETF investing. ETF investors don’t […]
AUD/USD Forecast July 24 – 28 2017
AUD/USD enjoyed another strong week, gaining 90 points. The pair closed at 0.7912, its highest weekly close since December 2014. The major event this week is CPI. Here is an outlook on the major market-movers and an updated technical analysis for AUD/USD. In Australia, employment gains slowed, but were still close to the estimate. Over in the US, political […]
E Maybe End Of The Line For SPX Rally
VIX declined beneath the June 9 low at 9.37. In doing so, it may have fulfilled the requirements for its Ending Diagonal formation. The Cycles Model suggests a reversal is imminent. Once complete, the upside move may be very fast. (ZeroHedge) How Bad a Damage If Volatility Rises: The Bear Trap of Short Vol […]
Law 101 Meets Psych 101
Steve Saville has a post out called Don’t Think Like a Lawyer. In the post he notes the following… “The job of a judge or juror is to impartially weigh the evidence and arguments put forward by both sides in an effort to determine which side has the stronger case. The job of a lawyer is to […]
