EC Is The Divergence In Central Bank Policy Sustainable?
The most interesting thing in markets today is the growing divergence in short-term interest rates between the U.S. and the rest of the developed world. While Japan and most of Europe have negative 2-year yields, the U.S. 2-year Treasury yield has moved all the way up to 1.38%, its highest level since 2009. At 0.71%, […]
What Did I Say?
Oh, yes, I remember now – – “trendlines matter” There really aren’t enough ways to say “thank you” for this February 22nd call on crude oil (when it was $55). It has plunged about 14% since then.
USD/SEK Stumbles As Rising Swedish Inflation Beckons Eventual Tightening
Although most of the attention being paid by markets centers on the upcoming FOMC decision due for release on Wednesday, the European dynamic has been dominated by inflationary data from across the continent.The latest data from Sweden in particular mirrors similar dynamics unfolding across the globe as resurgent energy prices help spur higher consumer prices.Although […]
BoE To Maintain A Dovish Stance; GBP Not Oversold Yet
The pound dropped quite sharply in a belated reaction to the end of the legal process. Brexit is in the hands of Theresa May now. What’s next? The next risk event is the BOE. Here is their view, courtesy of eFXnews: Credit Agricole CIB Research expects the BoE to stay on the dovish side this week linking its […]
4 Strong Buy Staffing Stocks On Blowout Job Creation
The year is off to a sizzling start for job creation. Employers added almost half a million jobs in the first two months of 2017, the best back-to-back performance since last summer. Not only were workers hired at a robust pace, unemployment came down and wages scaled higher. The number of people losing jobs is […]
Rocking With Energy
Back on February 10, I wrote a post called Lake Erie, and I did a post for my beloved Slope Plus members called Return to Lake Erie, in which I suggested that energy stocks were going to head lower, and noted I was going to buy the triple-bearish ETF symbol ERY (my precise words on February 10th were Yesterday I […]
Oil Supply Remains Resilient, Prices Heavy
Oil prices are lower for the seventh consecutive session. Light sweet crude prices had fallen 10.3% over the past two weeks, and with today’s losses are off another 1.6% already this week. There are two main considerations. The imbalance between supply and demand has not adjusted as much as expected, and the market positioning is […]
Crude Plunges (Again) As Saudis Reverse 1/3 Of January Cuts, “Steve” Stunned
Earlier this morning, we noted that crude had put the brakes on a six day slide. “The market is beginning to turn its attention to Wednesday with the Fed and the EIA reports,” Ole Hansen, head of commodity strategy at Saxo Bank said, adding that “[everyone] is still nervous but we are retracing a bit after that selloff.” Or, […]
How Negative Sentiment Will Continue To Drive The Market Higher
As I noted two weeks ago as we were striking the 2400 region on the S&P 500 (SPX): “As we now find ourselves striking our target of 2400-2440SPX, now is the time to emotionally prepare yourself for a ‘pullback.'” Since that time, the market has been consolidating lower. In just the last 24 hours on Seeking […]
US Producer Prices Spike At Fastest Rate In 5 Years
With tomorrow’s rate hike baked in the cake, today’s hotter than expected PPI print for February provides Yellen more cover (as economic growth forecasts slump). PPI Final Demand surged 2.2% YoY (more than expected) driven by a 4.0% YoY jump in final demand goods. This is the highest inflationary print since March 2012. Final Demand Energy […]
