As we lurch through successive credit crises, central bankers and economists believe they learn valuable lessons every time, and that the ultimate prize, the suppression of business cycles through monetary policy, will be achieved. We saw, over Brexit, how wrong the Bank of England’s and the UK Treasury’s models were, and these errors were also…
The Chart of the Day belongs to Salesforce.Com (CRM). I found the computer software stock by using Barchart to sort today’s 52 Week High list first for the most frequent number of new highs in the last month, then I used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 10/3 the…
US equities rallied today on the earnings report from WalMart, and an excess of hot money with nowhere productive to go. Today was characterized as a great time to buy the dip, which occurred earlier this week. Tomorrow will be a stock options expiration. The House passed its version of ‘tax reform’ today. It will…
Interesting that the Yen saw only minimal inbound traffic on Wednesday’s equity sell-off and today is still little changed with a stock rally! Admittedly, volumes are a shadow of what they used to be some years back, but just demonstrates how the game has changed. There is still plenty of money sitting on the side…
After surging to peak levels on Nov 7, the Wall Street is again entangled in a web of woes ranging from uncertainty in tax reform to a slide in oil prices. This is especially true given that the tax plan unveiled by the Senate differs from that of House Republicans on various fronts that have…
Priced at $17 per share just seven years ago, the Tesla IPO ended up being a total bargain for anyone lucky enough to get in. However, this view comes with the benefit of plenty of hindsight – and even Elon Musk would tell you that it wasn’t always obvious that the company would be around…
Fund Manager’s Survey We’ve looked at some of the results from the BAML fund manager’s survey in a previous article. Let’s look at some more results to help us forecast where asset prices are going. The chart below shows the z scores of a few assets. When the z score is high, it is overbought…
Tesla CEO Elon Musk has a history of over-promising and under-delivering. Following the most recent quarterly earnings, investor patience may finally be wearing thin. I have covered advanced biofuel companies for more than a decade, and just about all of them made implausible claims about their technologies. They consistently overpromised and underdelivered, until they finally ran…
Industrial production rose 0.9% in October after a revised 0.4% in September. In reference to the discrepancy between industrial production and the regional Fed manufacturing reports, Econoday says “The last piece has fallen into place.” What’s the real story? When I went to bed early this morning the futures were jumping. I figured the report…
(Audio length 00:11:11) Doc is with me to discuss the moves in the US equity markets. The Dow is up almost 200 points on the back of some better than expected earnings and news that the House is going to vote on tax reform. Again more momentum chasing and optimism around tax reform is driving…
