BIS Blames ECB For Rising Target2 Imbalances: Fear Of Default
In the latest BIS Quarterly Review, the BIS points a finger at the ECB for rising Target2 imbalances. That sounds highly accusatory, but the BIS also claims this is a “benign by-product of the decentralized implementation of the asset purchase program (APP) rather than as a sign of renewed capital flight.” I strongly disagree that any of […]
E The Struggle Within The Bond Market
With the equity markets sitting at record highs and in a state of euphoria, bond investors are of two minds. The first group of bond investors have set up huge short positions, anticipating a wholesale upward shift in the yield curve, in sync with the attitude in the stock market. The second group of bondholders […]
Stock Market Today: Weak Underneath, Strong Up On Top
My Trading Journal for the Stock Market Today: SPX did what it does best following a morning sell-off, and that is, to buy the freakin’ dip. (‘BTFD’ for those looking to add another acronym to their life). Support that I marked in the chart below on yesterday’s trading plan identified this as a potential bounce area. I played […]
If It’s Obvious, It’s Obviously…
By now, everybody knows the bull argument. In short, stocks are discounting better days ahead for the economy and earnings, less regulation, a “fantastic” stimulus package, and of course, “massive” tax reform. But as I’ve opined a time or two, the key here is that these expectations must at some point turn into reality. I.E. […]
January 2017 Trade Growing But Trade Balance Worsened
Trade data headlines show the trade balance significantly worsened from last month. Our analysis paints an improving picture for trade using the rolling averages – however imports grew much more than exports. Analyst Opinion of Trade Data Our monthly analysis using unadjusted data showed surprising growth in both exports and imports. But the data […]
E Best And Worst Large Cap Stocks – Tuesday, March 7
The best large cap sector is industrials. The top scoring industry is healthcare plans. The average large cap score is 68.21 and the average score over the past four weeks is 69.50. The typical large cap stock in our universe is trading -10.51% below its 52 week high, 4.89% above its 200 dma, has 4.28 […]
Testy Tuesday – 11,550 Or Bust On The NYSE
11,550. That’s the last 5% line on the Big Chart that will give us a sign that it’s time to raise our Must Hold levels – raising the trading floor on the markets 10-15% (still TBD) to S&P 2,100ish. That would then become the bottom of our trading range and will influence where we begin […]
4 Top-Ranked Dimensional Mutual Funds To Buy In March
Founded in 1981, Dimensional Fund Advisor offers investment solutions from different asset classes to institutional and individual investors, investment consultants and financial advisors. Dimensional prides itself in having more than 1,000 investment professionals across 12 offices in North America, Asia and Europe. Dimensional had nearly $460 billion of assets under management as of December 31, […]
The Coming Fed Hike And The Problems With Its Communication
Last week, a slew of Federal Reserve officials talked up the likelihood of a rate hike in the meeting next week. Janet Yellen was at pains to stress that the reason for a likely rate hike was that the incoming economic data were as good as or better than Fed models predicted they would be. […]
