As noted in NFTRH 352: I thought about releasing my JDST position on Friday because it is very profitable and because it appears that capitulation is in the air. But then I thought about the margin clerk and all those names he may be preparing to call upon on Monday. I thought about how my…
There are so many great companies in the market today, but there are also many overvalued companies. By using the ModernGraham Valuation Model, I’ve selected the five most overvalued Dow Components reviewed by ModernGraham according to the ModernGraham approach. Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments,…
Manufacturing activity picked up a bit this month, according to July’s flash estimate of the sector’s purchasing managers’ index (PMI). The sentiment benchmark inched up to 53.8 after June’s 53.6 reading—a 20-month low. Any value above the neutral 50 mark represents growth. Today’s update still shows this cyclically sensitive sector in a relative funk compared with last…
CLICK ON CHART TO ENLARGE Google rallied strongly from 2005 until 2007, gaining over 100% in this short time frame. In 2007, it created a reversal pattern (bearish wick) at (1), which ended up being an important high. After that reversal pattern, Google and the S&P 500 were both cut in half. Of late Googles…
CLICK ON CHART TO ENLARGE Google rallied strongly from 2005 until 2007, gaining over 100% in this short time frame. In 2007, it created a reversal pattern (bearish wick) at (1), which ended up being an important high. After that reversal pattern, Google and the S&P 500 were both cut in half. Of late Googles…
New home sales unexpectedly plunged 6.8% to 482,000 annualized units, far below any Bloomberg Consensus Estimate. Volatility is common for new home sales and there’s plenty of it the June report where the headline plunged 6.8 percent to a far lower-than-expected annual rate of 482,000 and where revisions erased 40,000 from the prior two months. But…
The Central Planners who thought that buying shares to prop up the stock bubble was an excellent fix are about to find out the true meaning of toil and trouble. The actual line from Shakespeare’s Macbeth is double, double, toil and trouble, fire burn, and cauldron bubble but for the purposes of analyzing what happens when authorities prop up…
Less than a decade after a housing/derivatives bubble nearly wiped out the global financial system, a new and much bigger commodities/derivatives bubble is threatening to finish the job. Raw materials are tanking as capital pours out of the most heavily-impacted countries and into anything that looks like a reasonable hiding place. So the dollar is…
As commodities carnage and credit cracks, talking heads remain intentionally ignorant in there sheep-like mantra to buy and hold stocks no matter what. Ever hopeful that ‘growth’ and the ‘future’ will fix any and all over-valuations, even with the current record low number of stocks trading ‘cheap’, they continues to ignore the facts. As Professor Bruce…
The yen has been sidelined this week. It is flat against the dollar. Japanese stocks and bonds are also little changed. The benchmark 10-year bond yield has fallen by less than two bp on the week, the least among the major bond markets. The Nikkei is off 0.3% on the week, which is the second…
