E-Mini Surge
The ES has rocketed (which is appropriate, given the missile threats) higher lately, and we’re getting very close to the underbelly of that broken trendline. Umm, if the market wouldn’t mind, this would be a pretty good place to slow down and reverse. Looking at things a bit differently, here is the NQ on an […]
Short Term Momentum And Long Term Reversals Can Coexist
In their seminal 1993 paper, “Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency,” Narasimhan Jegadeesh and Sheridan Titman reported significant returns to buying winners and selling losers in the U.S. equity market, now referred to as the “cross-sectional momentum anomaly.”(1) In 1997, Mark Carhart, in his study “On Persistence in Mutual Fund […]
Haven’t Invested In Cryptocurrency Yet? Don’t Worry, You’re Still Very Early To The Party
Is it too late to invest in cryptocurrency? It’s a question I get all the time. Yesterday, for instance, one came via email from Chaz. Chaz is an old friend. Trained as a software engineer, he’s very tech savvy. He’s already invested in a couple of cryptocurrencies.Now he’s torn. The problem isn’t that his cryptocurrencies […]
Texas Pension Giant Which Needed 35 Yrs Of 8% CAGR To Be 100% Funded, Slashes Expected Returns
As Harvey hits Texas hard in terms of lives and finances, more bad news (not to compare the scale of the two) came from the state from the giant known as Employees retirement system of Texas. As markets gradually transition from the tranquil landscape painted by central bank quantitative easing and some of the lowest volatility in market […]
Employers Can’t Find Qualified Workers?
The chart below is blurry, but it still gets the job done in terms of showing you the most important trend in the labor market. The chart shows the spread between those finding jobs ‘plentiful’ vs ‘hard to get’ according to FactSet. As you can see, the ratio is above the level prior to the […]
WTI/RBOB Tumble As Valero Says Refinery Startup Underway
WTI is suddenly back to a $45 handle and RBOB is tumbling near $1.60 handle after headlines reported Valero saying that startup is underway at its Three Rivers refinery and its Corpus Christi refinery, both in Texas, according to a statement from co. spokeswoman Lillian Riojas. Blomberg reports that the company is working to ensure availability of critical […]
Hot Options Alert: Midday – Wednesday, August 30
The most active equity options and strikes for midday: FRAN, AMD, AAPL, BAC, CTL, GE.
Amazon Kills The Fed’s Inflation Target
Amazon’s (AMZN) purchase of high-end grocery retailer Whole Foods (WFM) was approved last week. That the federal government had any role at all in the combination of two private companies is on its own an offense to common sense. Government barriers erected to mergers trample on property rights, restrain economic progress for crucial information about […]
It’s A Great Time To Buy Into Europe’s Banking Rebound
My, how things change… Little more than a year ago, German banks were starting to rebel against their central bank’s policy of pegging interest rates at less than zero. The German economy is better now. No one talks about negative rates anymore. I’ve been bullish on European banks for a while. (One of the recommendations in the Total […]
2nd Quarter GDP Revised Up To 3.0%, Annualized Inflation 1.0%
In its second of three estimates, the BEA revised second-quarter GDP up to 3.0% from 1.2%. The consensus was 2.8%. The BEA’s measure of inflation was 1.0%. Lower inflation numbers raise real GDP. Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter of 2017, according to the “second” estimate released […]
