Housing Starts Fall In October As Building Permits Rise
The pace of new residential housing construction slumped last month, dipping to 1.009 million units (annualized) in October — down nearly 3% from September’s total, the US Census Bureau reports. Newly issued building permits, on the other hand, perked up by nearly 5%, offering a brighter outlook for the near term. Yesterday’s encouraging update on the mood in the […]
EC News From Bubble-Land
Sentiment on Stocks and Ratio Charts Below is a brief update of a few stock market related data points we frequently discuss in these pages. Sentiment on stocks continues to be a mirror image of the gold market. Investor complacency is quite pronounced, to put it mildly. The first chart shows Rydex ratios – with […]
Bitcoin Down But Optimism Up
Bitcoin has over the past few years has had its ups and downs. From being touted as the new transaction currency, breaking away from the traditional currencies, to being used as a prime currency for running an underground drug market called Silk Road, Bitcoin seems to have come a full circle. Bitcoin has over the […]
Algos – We Have A Problem
For ‘years’ the US stock market has traded on ‘fun-durr-mentals’ – tracking USDJPY tick for tick day in day out as algos tickle leveraged currency trades to ignote momentum in US equities and guarantee ‘proof’ in the recovery. The correlation, however, between USDJPY and stocks (US and Japanese) has begun to deteriorate rapidly since Kuroda […]
Will We Hold It Wednesday – S&P 2,050 Edition
S&P 2,050! Why not? Why not 3,000? 3,500? 4,000? Is there any number that will begin to sound ridiculous to top 1% traders, who are using the Fed’s Free Money to make even more money for themselves? It’s like the $50M balloon dog at Christies – what’s the difference to people who have, essentially, infinite […]
Great Graphic: Americans Buy Record Foreign Bonds And Stocks In September
What did American investors as the US dollar was rallying in September and foreign investors bought a record amount ($164 bln) of long-term US securities? Why they were buying a record amount of foreign bonds and stocks. This Great Graphic, created on Bloomberg, shows two time series. The white line is net buying of foreign equities, and […]
Bull Market Has A Lot More Room To Run
Stocks are trading at record levels. Still the bull market could easily run equities up another 25 percent—even against the backdrop of slower economic growth abroad. The sagging fortunes of other advanced economies are mostly caused by structural problems that are unlikely to abate—in the European Union the rigidities imposed by a single currency, in […]
E Mid Cap Best & Worst Report – November 19, 2014
Since 2010, the best scoring names in our weekly mid cap reports have outpaced the S&P 400 by a median 4.07% in the following year. The best performers from our list from 1 year ago are ILMN up 95%, LVLT up 71%, LRCX up 61%, and ALXN up 58%. The best mid cap sector is […]
EC Market Breadth Is Trying To Tell Us Something About Risk
Volume Speaks To Conviction Since every stock trade has a buyer and a seller, stocks do not rise when there are more buyers than sellers (something that is not possible). Instead, prices rise when the conviction to buy is greater than the conviction to sell. It can be thought of this way under bullish conditions, […]
Apple Drops, But No Need To Worry
Apple Inc. (NASDAQ:AAPL) might have clocked a record high of $115 in the market, but that has not stopped some of the biggest hedge funds in the U.S from offloading their stakes in the company. Recent quarterly filings clearly show that these investors might be ridding themselves of their shares by the same measure with […]
