Earnings and Government Spending Valuations, inflation concerns, and delta-plus worries seem to have faded into the background in the momentum-frenzy that is driven by earnings and govenment spending bills…at least for the moment. As a trader, your job is to exploit the momentum – not necessarily explain it! Never mind trying to rationalize the exuberance (more…)
Higher-than-expected NFP Print Confirms the Inflation as Transitory?! If you thought markets were really worried about the Fed being wrong about the transitory nature of the inflation, then this morning’s pre-market bullish run on the markets following the NFP data should definitely baffle you! And, you may not be alone. Nevertheless, valuations, inflation concerns, and (more…)
Fed Feeding Fodder to the Markets’ Irrational Exuberance! As we published in our morning trading plans yesterday: “IF it (the FOMC decision) does not sound ominous, markets appear ready for embarking on another leg up. Bears need to be cautious against jumping into potential bear-traps”. This played out as expected yesterday after the FOMC event, (more…)
FOMC Bringing Late Halloween or Early Thanksgiving Today? As we have been writing since last week, “Valuations, inflation concerns, and delta-plus worries could begin to appear on investors’ radars once this momentum-based frenzy subsides”. The Fed’s tone today could be deciding to what extent these issues will drive the markets in the coming days. IF (more…)
Waiting for the Fed Event Tomorrow The underwhelming price action this morning is consistent with our models’ indication of no directional bias until the Fed’s meeting this Wednesday. As we have been writing for the last few days, “Valuations, inflation concerns, and delta-plus worries could begin to appear on investors’ radars once this momentum-based frenzy (more…)
Markets to Remain Directionless Until the Fed Meeting The underwhelming price action this morning is consistent with our models’ indication of no directional bias until the Fed’s meeting this Wednesday. As we have been writing for the last few days, “Valuations, inflation concerns, and delta-plus worries could begin to appear on investors’ radars once this (more…)
Big Earnings Week Winding Down – What Will Feed the Bulls Next? The earnings momentum could have registered its short term peak yesterday, and with the earnings of AMZN and AAPL taking some steam off of it some consolidation could be in order in the coming days. Valuations, inflation concerns, and delta-plus worries could begin (more…)
Last Two Days of the Big Earnings Week The earnings momentum could be reaching a crescendo today and tomorrow, and some consolidation could be in order after that. Valuations, inflation concerns, and delta-plus worries could begin to appear on investors’ radars once this momentum-based frenzy subsides. Our positional trading models are sporting a neutral bias. (more…)
Earnings Power…Exhausting Soon? The earnings momentum appears to be decelerating a bit, and some consolidation could be in order over the coming days. Valuations, inflation concerns, and delta-plus worries could begin to appear on investors’ radars once this momentum-based frenzy subsides. Our models are flipping to a neutral bias from the cautiously bullish bias adapted (more…)
Our Models Riding the Earnings Momentum As per yesterday’s morning trading plans published, our positional trading models opened a long at 4553, with a trailing stop of 22 points. The earnings momentum appears to be building up this morning, which could further fuel the markets to register continued record highs. Valuations, inflation concerns, and delta-plus (more…)
