In Wednesday morning’s blog, “Pay Attention To The Fed Minutes”, I wondered if Powell would blink or continue to hammer away at the necessity to tackle inflation. As far as I can tell, he stuck to his guns on the…
I think we all know by now that it’s all about The Fed. Ever since Powell pivoted hawkish on April 21 it’s been straight down for risk assets. Which brings me to the release of today’s Fed Minutes at 2pm…
James Mackintosh wrote an excellent piece for The Wall Street Journal this morning (“Conditions Are Ripe For Deep Bear Market” [SUBSCRIPTION REQUIRED], Monday May 23, B9). A bear market is conventionally defined as a drop of at least 20% from…
Walmart (WMT) reported a surprisingly bad quarter Tuesday morning as margins were crushed by inflation and supply chain issues. The top line was fine with US comps excluding fuel +3% but Operating Margin of 3.8% was down from 5.0% a…
Take a close looks at the eighteen red dots in the chart above by Jason Goepfert of Sentimentrader: 1987, 1990, 1998, 2008-2009, 2018-2019, 2020. Breadth readings this bad – this many stocks hitting 52-week lows on the NYSE and NASDAQ…
An interesting meme has taken hold of the crowd mind that is financial markets in recent weeks: The Peak Inflation Narrative. It started when Powell signaled a 50 basis point hike on Thursday April 21 and has gained momentum since….
Make no mistake: We’re in a nasty bear market and stocks are going much lower. But the market has overshot on Fed hawkishness. As you can see in the tweet above by Jim Bianco, the market is expecting 225 basis…
The combination of an oversold market and good enough Facebook (FB) earnings may result in a squeeze higher Thursday. If we start to see a trend day higher, investors may pile in and shorts who have overstayed their welcome will…
With the NASDAQ and QQQ testing YTD lows Tuesday morning at 12,600 and $320 respectively I think the first 50 basis point Fed rate hike has now been priced in. This applies to the precious metals miners and commodity stocks…
The precious metals miners are getting whacked for the third straight day Monday in the wake of Powell’s hawkish comments on Thursday. It’s pretty incredible to me that after nearly 15 years of insanely easy money, a few words from…