Good Thursday morning all. Rather ugly day yesterday with a sell-off throughout the smart money hour into the close. And it was the 3rd day in a row with negative A/D for NYSE. It’s been a couple months since we’ve seen that. Weak internals across the board; 2:1 losses in both A/D and volume.
Read MoreGood Thursday morning all. Not only was yesterday a big up day across the board, with gains of 1% to 1.5% in each of our broad market indexes (small caps led the way, +1.51%. Importantly we had confirmation from the internals, namely in NYSE up-volume,
Read MoreGood Thursday morning all. Yesterday marked the 51st record close in S&P 500 this year and another ATH in Nasdaq, as it holds above the 15,000 plateau. And our internals put up another positive day…that’s 4 in a row, which hasn’t happened in several weeks.
Read MoreGood Thursday morning all. 1% losses across the board yesterday but we did see an improvement in the internals (most notably in Nasdaq where up/down volume was flat). The markets are in mini-correction mode based primarily on the 3 factors…
Read MoreGood Thursday morning all. As we have covered in previous updates, as bad as J Powells track record is (once his pressers begin the markets immediately start to tank), JP actually scored a win yesterday. When he began speaking the Dow was -309 and Nasdaq -104, but by the close the Dow was -265…
Read MoreGood Friday morning all. Following a solid intraday reversal higher into the close that sent multiple indexes and sectors to ATH (including SPX, Nasdaq, Housing and Transports) the Dow Jones is giving back 2/3’s of yesterday's gains this AM. Earnings continue to destroy their comps of Q1 2020.
Read MoreGood Thursday morning all. Quite the mid-day reversal yesterday, immediately following the Coinbase IPO. Coinbase, which we will own in the VRA Portfolio at some point soon, debuted by popping to $429/share (priced at $250), giving it a first day market cap of $100 billion,
Read MoreGood Thursday morning all. We begin this morning with a tip of the cap to the Fed’s J Powell. Not only did the Fed nail their written FOMC comments (no rate hikes through 2023) but Powell followed it up with a strong presser, rarely going off-script. More of this please.
Read MoreGood Thursday morning all. It seems the Dow and Nasdaq have decided to have massive moves higher, but on alternating days. On Tuesday, the Nasdaq soared 3.7%, while the Dow lagged. Then yesterday, the Dow ramped 464 points higher (+1.5%) while Nasdaq was (slightly) lower by 4 points.
Read MoreGood Friday morning all. Markets were less than enthused by what they heard from J Powell and the FED this week. On the one hand they said they would keep rates near zero through 2023…that’s been the case for all of 2 of the last 10 years…but on the other…
Read MoreGood Thursday morning all. Following the Dows -710 point yesterday we’re looking at -150 this AM. Second wave CV fears abound and a market looking for its next round of monetary (Fed) and fiscal (govt) stimulus.
Read MoreGood Thursday morning all. The 400 point swing in the Dow yesterday, from +220 to -170 at the close continues a bit this morning with Dow futures -140. One week ago today was the -1800 point move lower in the Dow (-6%) with -8% in the R2K….
Read MoreGood Friday morning all. Yesterdays 1800 point loss in the Dow is being met with +600 point gains in futures. I’ll be surprised if these gains hold. After a 48% 2-month move higher and then yesterdays -7% drop and the “hideous” internals (among the worst in history,
Read MoreGood Thursday morning all. The Philly Fed Index (manufacturing) numbers this morning were pretty remarkable. 36.7 vs est of 8. I don’t put much stock in any single economic report…I actually trust few…but this massive beat does help to put another dent in permabears…
Read MoreGood Thursday morning all. Yesterday's +275 point move higher in the Dow brought us to 29,500 for the first time. Post fear-mongering outbreak of the corona with lime virus US markets have now jumped by approx 5%, but the semis have rocketed 8.5% higher (semi’s lead tech, tech leads the market).
Read MoreGood Thursday morning all. As expected, the FED cut rates by .25% to a range of 1.5% — 1.75%. For us, it’s increasingly hard to take Powell and his merry band of FED Governors seriously. On the one hand, they just told us that the rate cut was motivated (in part) by “negative global developments”…
Read MoreGood Friday morning all. Getting a very late start in writing. Updates from mgt on both Cara (CARA) and Vista Gold (VGZ) this AM. First, the September jobs report is out and pretty much in line with expectations. 136,000 jobs created with the unemployment rate down to 3.5%, a 50 year low.
Read MoreFed Meeting, Powell Getting Better! 1/4 point rate cut and presser behind us. All pretty much as expected. Fed Chair Powell did ok. The trading action during and just after the Fed presser is typically sporadic and not always easy to trust. Here’s what we do know; the cut has now taken place.
Read MoreRoughly 3 hours after yesterdays (second) VRA Update, where we applied Occam’s razor and made our case that global bond markets are screaming at us “there’s not enough debt in the world…interest rates will keep plummeting until you issue more debt”, Treasury Secretary Steve Mnuchin announced this:
Read MoreSome quick political/economic hitters to start the day… 1.) The last two nights of Dem debates…holy batshit crazy…what a circus. Judging solely from the feedback of long term moderate D’s, the left has gone completely off the rails. Until we see evidence to the contrary, the US remains a center-right country.
Read More"Kip's VRA financial newsletter is a MUST read for every saavy investor in this country. Disregard it at your own peril. His mantra is my mantra. Kip Herriage's newsletter is my financial Bible."
--Wayne Allyn Root
2008 Libertarian Vice Presidential candidate
Author, "The Conscience of a Libertarian"
