Amid a collapse in the crypto space and under investigations over its ICO, Overstock’s (OSTK) share price is tumbling after-hours – near 6-month lows – after announcing a new offering of 4 million shares. As of March 12th, Overstock had 29.5 million shares outstanding, so this is a significant dilution. Full Statement: Overstock.com, Inc. today announced…
What a topsy-turvy world we live in thanks to Fed nonsense. Consider the outgoing NY Fed president’s latest brainchild. Outgoing New York Fed President William Dudley has a new proposal to mock. Dudley proposes paying bankers with long-term debt. Wall Street should force banks to share the pain of regulatory penalties by docking executives’ pay, a…
Last week, U.S. equities suffered their gravest losses in more than two years. Fears of an impending trade war between the United States and China crippled markets, with the Dow suffering its worst week weekly loss since January 2016. These losses underscore the challenges faced by large-cap stocks in recent times, a trend that is…
While interest rates have risen over the past couple of years, it’s true that they are still well below the mean of the past 30 years. More importantly, however, the net change in key borrowing rates from this cycle’s lows to present has already been intense. This table summarizes the net change to date for…
While the pundits are talking trade wars, Chinese officials are taking the latest US provocations in stride. Pressure on China’s trade practices are not new. The US has been complaining about intellectual property violations since Bill Clinton was President. China’s trade practices have also raised the ire or US and Europe, which has resulted in…
Generally speaking, crude oil and the energy exchange traded fund XLE have a pretty high correlation. Since mid-February, that correlation has been breaking down. In mid-February, Light Crude Oil (WTIC) hit a low of $58.07 while XLE dropped to $63.99. Since then, WTIC has rallied 12.88% to $65.55 while XLE has only rallied 6.22% to…
Nice market today! Things are definitely looking a lot better than last week. I don’t think we can declare a new uptrend quite yet though because the new 52-week lows are still a bit too elevated. In addition, the bullish percents continued to drift lower today, although sometimes these indicators don’t turn as quickly as…
A full-court press weekend of press by WH officials (Mnuchin gushing hope) and sure enough… a big bounce in stocks… Video length: 00:00:19 China stocks rebounded in the afternoon session (National Team again?) But European stocks bloodbath’d below Friday’s lows… And once Europe close today, US equities exploded… But everything started in US markets with…
With the release of its economic forecasts and, more importantly, its dot plot of future rate increases, the Fed is asking investors to “trust us, we know what we are doing”. Whether we should expect 2 or 3 rate hikes in 2018, is beside the point. We are asked to ignore current conditions and take…
