Let’s explore the “Dynamic Duo” effect of Trump plus the Fed starting with an absurd thesis about steel. The Trump administration and EU officials complain about the “overproduction” of steel. A 2016 Economist article goes one step further. The Economist attempts to explain Why the world has too much steel. Think about the silliness of that…
In today’s day and age of high speed computers, lightning fast financial information and data overload, diving into the world of trading and self-directed investing can be a frightening challenge for a newcomer to say the least. Add on top of that deciding which strategy to use and it’s no wonder why so many traders…
Tuesday’s Consumer Confidence report for the month of March showed a moderately larger than expected decline from February’s multi-year high. While economists were forecasting the headline index to rise to 131.0 from last month’s initially reported reading of 130.8, the actual reading came in a little more three points weaker at 127.7.While the index declined,…
Ahh-the good ‘ole days… When everyone loved Facebook; Google was all the rage, and every dip was a buy opportunity. Those were the Year of the Fire Rooster days. In 2017, when we learned that each male rooster requires 10-12 hens per day, we thought that was awesome. Now, we have a Brown Earth Dog. And he’s…
The Media blamed Facebook for today’s woes but really the damage was done in January when Large Cap indices sold off and today was the turn of profit takers to take a shot at those high flying Tech Indices. Markets still are a long way from the oversold conditions of February 2016, November 2011 and…
In this week’s edition we look at how monetary policy interacts with high yield corporate credit spreads – particularly relevant in the wake of the latest rate hike, then we also look at the TED spread and what it might be telling us about the risk outlook. Subsequently, we review emerging market import volumes and…
Friday morning, the Census Bureau posted the Advance Report on the latest Durable Goods New Orders. This series dates from 1992 and is not adjusted for either population growth or inflation. Let’s now review Durable Goods data with two adjustments. In the charts below the gray line shows the goods orders divided by the Census Bureau’s monthly…
The whole energy complex tumbled today (as the usd strengthened) amid the risk off rout, and extended losses after API reported an unexpectedly large crude build. “Oil prices gained and now they’re testing this key resistance level” of the January high, said Hans Van Cleef, senior energy economist at ABN Amro. “We’re waiting for the inventory data to…
Tesla Inc. (Nasdaq:TSLA) stock tumbled another 4% on Tuesday after a long-time bear built a case for it to slide even further. He feels a Tesla bankruptcy is imminent. Although TSLA remains above where it was this time a year ago, short-sellers see it falling even further. The automaker’s junk bonds are being heavily shorted…
