Markets pulled back last week. AAPL earnings disappointed investors on Tuesday and pressure the tech stocks. Energy stocks stayed weak. Stocks were especially weak on Friday, as SPX pulled back 1.07% and closed just below 2080. However, we traded very well, and booked winning trades on both up and down sides. Our TSLA calls early in…
T2108 Status: 28.0%T2107 Status: 34.8% (a 9-month low!)VIX Status: 13.7 (8.7% gain)General (Short-term) Trading Call: NeutralActive T2108 periods: Day #190 over 20% (overperiod), Day #1 under 30%, Day #5 under 40%, Day #45 under 50%, Day #62 under 60%, Day #261 under 70% Reference Charts (click for view of last 6 months from Stockcharts.com):S&P 500 or SPYSDS (ProShares UltraShort…
Since the beginning of 2009, the U.S. 10-year yield has averaged around 2.6%. Consequently, most investors feel that interest rates have nowhere to go but up. However, from 1930 to 1955, the U.S. 10-year yield also averaged 2.6%. That’s 25 years! There was even a double-digit annual inflation rate after World War II, yet rates stayed low….
Was last week a preview of things to come? There are quite a few people out there that believe that the stock market would begin to decline in July, and that appears to be precisely what is happening. Last week, the Dow Jones Industrial Average (INDU) fell by more than 530 points. It was the…
Central planning asset purchases aimed at propping up prices destroy the essential price discovery needed by private investors. Panicked by the possibility of declines that undermine the official narrative that all is well, authorities the world over are purchasing assets like stocks, bonds and mortgages directly. Central banks are explicitly taking on the role of buyers of…
The eurozone is supposedly in a state of recovery. However, in spite of that recovery, public debt and debt-to-GDP levels are still rising. Austerity is difficult to find in any realistic sense. Please consider Eurozone Borrowing Rises to Record as Recovery Remains Weak. The European Central Bank’s programme of quantitative easing has pushed down interest rates…
Late last month in “The Biggest Threat To Chinese Stocks: Shadow Lending Crackdown“, we suggested that the pressure on Chinese equities – which at that point had only begun to build – was at least partially attributable to an unwind in the country’s CNY1 trillion backdoor margin lending edifice. As we explained, brokerages were only…
The market is filled with companies with a lot of hype which are touted as great investments, but Benjamin Graham taught that intelligent investors must look past the hype and avoid speculating about a company’s future. By using the ModernGraham Valuation Model, I’ve selected five of the most overvalued companies reviewed by ModernGraham. Each company has been…
The Euorzone leadership remains uneasy with the third bailout of Greece. This unease can be seen in the recent delay to the start of the negotiations, with the Troika staff in Athens siting “technical reasons”. The actual reason has to do with the fact that Greece’s creditors have yet to reach an agreement among themselves….
The solar industry continues to shine both domestically and globally, despite falling prices for traditional fossil fuels. Utah-based Vivint Solar, Inc. (VSLR) has grown quickly over the last few years and is now one of the largest U.S. residential solar installation companies. It has around 523 megawatts of contracted rooftop solar assets built or under development. Vivint went public…
