Author Archives: Darren Marchal

Where Are Stocks Headed Next?

The S&P 500 is at a critical juncture as investors and traders will be determining if this is the start of another bear market, a prolonged holding period, or a correction which soon abates. We look to the fundamentals to drive our discussions because we think they drive markets in the long run. To be clear,…

Japanese Yen, Aussie Dollar Fall On Firming Fed Rate Hike Outlook

The Yen underperformed in Asia Pacific trade, falling alongside gold prices while front-end US Treasury yields rose. Realized and expected Fed interest rate hikes have bid up borrowing costs globally since close to 80 percent of all monetary transactions are settled in USD. Bets on more of the same after a hawkish speech form Chair Powell are thus understandably negative for the…

Cooper Tire

Cooper Tire (CTB) makes tires for vehicles. The industry is going through a difficult period, with recent sales below expectations, causing promotional pricing that further compounds the problem. Because it is a high fixed-cost industry (manufacturing), revenue shortfalls like those experienced right now cause big changes on the bottom line. For example, this year’s headline…

You Don’t Have To Put On The Red Light

Roxanne by the Police. Or do you? That’s just it. The market is pretty tough to read right now.  How will the US pulling out of the Iran deal play out? The immediate response was gold, silver, and soft commodities rallying. And equities, especially the Russell 2000 and Transportation, after testing the top end of the…