Long-term trends grow from short term trends. We attampt to determine the short term trends and where they are pointing.
Traders routinely fixate on short-term price movements in their chosen financial instruments. Longer-term investors need a wider focus on stocks, forex, indices, FED actions and commodities to gain a better market perspective. The performance of US markets is worthy of mention, particularly since the epic global meltdown following the financial crisis of 2009/10.
The Markets in Perspective: What Goes up Must Come down? Read More »
Technology and automation have changed the way we live. Often, it has made our lives simpler in ways we are not even aware of. The financial world has experienced some major changes over the last few years, due to the explosion of digital devices made possible by technology and more compact printed circuit boards (PCBs).
5 Ways Automation Has Changed the Financial World Read More »
One of Trump’s campaign platforms was that the U.S. wasn’t getting fair deals in international trade. His two biggest examples were NAFTA (trade with Canada and Mexico) and trade with China. And in 2018 the media panicked and drove the markets down anticipating that Trump would somehow destroy all trade and the U.S. would plunge the world into another depression. Then in November 2018 NAFTA (North American Free Trade) was replaced by USMCA (United States-Mexico-Canada-Agreement) which included new protections for U.S. intellectual property, Digital Trade, Anti-corruption, and Good Regulatory Practices. It also included provisions “Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products, and disciplines on currency manipulation.”And now six months later the Trump administration is taking on China. But China is not Mexico and it has a lot more clout so where does the U.S. stand in this fight?
U.S.-China Trade War: Who will Win? Read More »
In anticipation of the September 25-26 Fed meeting, CNBC ran this headline (Sept. 21): “Record High Stocks Face Fed Rate Hike.” implying that the Fed’s interest rate decisions actually affect the stock market. Common wisdom says that “falling interest rates means higher stock prices, while rising interest rates means lower stock prices.” At first blush this might sound logical because rising interest rates makes fixed income investments more attractive because they pay more and have less risk than stocks. So some of the available capital will flow into bonds, etc. thus starving the stock market and putting downward pressure on prices. In this article, Elliott Wave International contends that there is actually no consistent relationship between interest rates and the stock market and they present examples of how the exact opposite of what you would expect has happened.
Do the FED’s Interest Rates Affect the Stock Market? Read More »
A few weeks ago, I was telling a few thousand of my “closest friends” on Facebook that you can’t count your North Korean chickens before they hatch. North Korea has a long history of provoking the West with Nuclear threats then backing down in exchange for “concessions” and a “Treaty”. Typically this means a cash bribe from the West in exchange for a worthless promise from North Korea. After a while the Treaty gets broken and the cycle repeats itself.
Don’t Count Your North Korean Chickens Before They’re Hatched Read More »
As you probably know, the conventional wisdom on Wall Street is that investors will sell stocks in favor of bonds when yields reach an attractive level. So, it’s not surprising that many pundits blamed the DJIA’s triple-digit decline on rising bond yields. Let’s put that belief to a test.
Will Rising Bond Yields Send Stock Prices Tumbling? Read More »
The following article was written by Chris Ciovacco of Ciovacco Capital Management in it he looks at overtime hours, and compares current values to previous recessions. It has been reprinted by permission.
This Chart Says to Be Open to Better than Expected Market Outcomes Read More »
In the following article, Chris Ciovacco of Ciovacco Capital Management looks at the current market volatility compared to similar occurrences in past years to determine how much risk is in the market today.
Price Action Year-to-Date:- What Can We Learn from History?
Reference Points Provide Context
A December 2016 post highlighted similarities between late 2016/early 2017 and the 1994-1995 period. The analogy proved useful in 2017 with stocks posting a rare low-volatility year that featured a strong bullish trend, which compared very favorably with the strong-gains/low-volatility year of 1995.
Is the Current Highly Volatile Market Really Bearish? Read More »
Corrections are a normal part of any “Bull Market” and a 10% correction is necessary every now and then to shake out the “weak hands”. Even a 20% correction can be no cause for worry. Today Chris Ciovacco of Ciovacco Capital Management looks at the recent correction and where the market now stands. Are we in for a new bear market or is this just business as usual for a bull market correction?
A Correction or a New Bear Market? Read More »
Working from home is more popular than ever as a new report has found that the number of remote or telecommuting workers has increased by 115% in a decade. As remote working gives employees more flexibility and allows them to have work-life balance, it appears that there is no shortage in remote job listings in fields such as real estate, mortgage, and accounting as they continue to grow every year. This year, the number of telecommuting workers is expected to increase with new trends in remote work on the horizon.
Work From Home Trends To Expect In 2018 Read More »
