How To Play A “Hawkish Pause”
The Fed is widely expected to do a “hawkish pause” today. What exactly does that mean? It means that while they will not raise interest rates, Powell is expected to be hawkish in his press conference. That is, he will…
The Fed is widely expected to do a “hawkish pause” today. What exactly does that mean? It means that while they will not raise interest rates, Powell is expected to be hawkish in his press conference. That is, he will…
The case that a new bull market has begun is growing stronger. From a technical standpoint, the S&P broke out to a 52-week high Monday and has continued higher Tuesday. Inflation continues to roll over with today’s May CPI coming…
Any way you slice it, inflation is clearly coming down and seemingly under control. Wednesday’s April CPI Report was just the latest data point to confirm that. And that means that the Fed’s hiking cycle is likely over. Fed Futures…
On Wednesday, The Fed raised the fed funds rate to a range of 5.00%-5.25% – the highest level since 2007. Importantly, they removed a line from their statement saying that “the committee anticipates that some additional firming may be appropriate”…
The Fed today attempted the highly difficult “dovish hike”. What is a “dovish hike”? Think of it as like the triple axel in figure skating or the double clutch in basketball. It’s the gold standard of central banking moves, one…
There is a tremendous amount of uncertainty and disagreement about what the Fed will and should do on Wednesday. Nick Timiraos provided an excellent overview in an article on the front page of Tuesday’s Wall Street Journal (“Fed’s Interest-Rate Decision…
Inflation is yesterday’s news. The Fed had already crushed it with all its rate hikes and the failure of Silicon Valley Bank and its collateral damage are ushering in deflation. While the Fed Futures are split on if the Fed…
As everybody prepares for tomorrow morning’s Jobs Report, I’m focused on Silicon Valley Bank (SIVB) – a small bank that caters to early stage technology companies (the heartbeat of the Silicon Valley economy). As interest rates have risen and financial…
Fed Chair Powell gave testimony before Congress this morning that was decidedly hawkish. As a result, the probabilities of a 50 vs 25 point rate hike in two weeks flipped from 30/70 before his testimony to 70/30 after, as you…
While the price action still favors the bulls, the market has been marginally weak over the last five trading sessions since Apple (AAPL), Google (GOOG/GOOGL) and Amazon (AMZN) reported 4Q22 earnings on Thursday afternoon February 2nd. One of the more…