Horror Stories From the G7 and/or Jackson Hole Over the Weekend? Investors seem to be fretting over the potential for market horrors to unfold over the weekend involving unexpected headlines from the G7 summit or the Jackson Hole. Add to this the Friday options expiration plays and we have got a recipe for chaotic and (more…)
Powell in Hole, Esther on Accommodation, Yields in Inversion… Fed Chair Powell’s speech at Jackson Hole tomorrow is going to be watched very keenly and parsed feverishly, and can set the tone of the trading for the next week. Kansas’ Fed Esther’s comments that July rate cut was “not necessary” could be setting the tone (more…)
FOMC Meeting Minutes to Offer Help for Market Bulls? The early exuberance around retail earnings notwithstanding, FOMC meeting minutes release at 2:00pm EST is going to set the tone for the market’s mood for the rest of the week until Friday. Plummeting bond yields and the underlying recession concerns, or the skyrocketing retail earnings and the (more…)
Not Done Yet! The roller coaster ride of the last few weeks does not seem to end any time soon, as neither the bulls nor the bears have any advantage here as of now. Hence, investors need to be nimbler and more agile than usual if want to trade in these markets. Or, have deep (more…)
It’s a Dogfight Out There! With all the volatility witnessed in the markets last couple of weeks, you can probably relate to the dogfight in the image above – that is being waged between the bulls and the bears. As we explicitly took a stand of, there seems to be no particular side exerting or (more…)
Yield Curve and Options Expiration – to Exasperate Frustrated Investors/Traders Traditional investors and traders in this market would be frustrated with continued influence of exogenous factors seemingly driving the financial markets wild. Yes, the Finance 101 course you took or even the Efficient Markets Hypothesis your professor (and, most everyone in the Investment Advisory (more…)
The Doublespeak from China and our Politicians Driving the Markets Yo-Yo With the naive and clueless policy-by-tweet politicians (not “leaders” – we seem to have no leadership anywhere anymore at this moment) driving our economic governance (or, lack thereof), and the cunning opponent’s deeply strategic moves defining the trade war, investors are being left dazed (more…)
Yield Curve – Economy at the Crossroads The inversion of the yield curve (2-year treasuries yielding more than the 10-year treasuries) is flashing a sign of potential recession. Whether it is a self fulfilling prophecy or an impending economic indicator, the financial markets are going to go through a lot of volatility based on (more…)
The Bear is Out Fighting – The Bull is Not Dead Yet The trade war and the yields are exerting tremendous pressure on the bulls and emboldening the bears. The market is in the battleground region – neither the bulls nor the bears are in control, yet. Our models indicate no immediate victory to either (more…)
Bears Getting Emboldened? The apparently mis-managed, mid-judged, and mis-publicized trade war appears to begin to take its toll on the confidence of businesses and investors – not only on the confidence, but could very well be on their bottomlines. And, this could be emboldening the bears to slowly emerge from their hiding. Nevertheless, if you (more…)
