As the S&P sits as the top the of the channel it been bouncing in for 2 months the question is does it break up to the 1420 year high or stay in the current channel and start dropping. If today's gains hold and don't get slash in the last 5 minutes 1420's the bet.
Tuesday, August 7, 2012
Round the all time high on the S&P to 1520. We are less then 8% from that at 1400. Yes that sounds like a dead market people are running from? Seriously? So if this is dead what's good look like, up 25% a every year? It seems the expectations are way off of reality.
Friday, August 3, 2012
Tuesday, July 31, 2012
So I'm definitely not a farming expert, but Sunday I watched a farmer mow down his drought killed corn field. That's the first time I've ever seen a field just mowed down so late in the summer. I do know that corn prices have shot up and that more then half the food out there uses some corn based something, high fructose corn syrup, feed for animals, etc. So basically it's how bad does this push inflation and does the Fed care. It may not effect the core CPI and we'll have QE3 like he market seems to expect. Real fun will be if the ethanol requirement for gasoline gets removed and what that will do to gas prices.
Tuesday, July 24, 2012
Italian 10 year is back over 6.5%. I know Spain is the big watch point right now and it looks bad but Italy is the next problem that's twice as big. US Treasuries are flirting with all time highs while equities are still near the top for the year?
Monday, June 25, 2012
Friday, June 22, 2012
So the Philly Fed number was way down, unemployment's staying up, and basically the economy looks weak again. The Fed keeps saying it won't move until inflation isn't even close to an issue and with Oil prices down to 78 a barrel that might happen sooner then later.
Thursday, June 7, 2012
Friday, June 1, 2012
So did that jobs number just kick off QE(n)? Oil prices have slid far enough down to quell inflation fears and with the unemployment rate going up, now feels like everything's in place for some action. Plus people are going to start begging for intervention if the market keeps going down. It's a fun game of what's happening in the real economy and then what will central banks do. You need to know both now.
Friday, May 18, 2012
Thursday, May 17, 2012
The interesting thing to me is the fear a couple years ago was Greece's problems would spread to Ireland and Portugal and then Spain and then Italy and then that would take the whole thing apart. Isn't that's what's happening right now? It's just in slow motion compared to the original idea that everything would unravel in months. The ECB's different extend it programs changed the timeline but not the problem. Fear seems to be tied more to velocity then actually outcomes. Not sure if this is people having the time to hope for the best or more everyone's had time to process and accept the outcome instead of the panic high speed movement caused panic. Either way we're still headed in the same direction people just don't seem as scared.
Friday, May 11, 2012
Wednesday, May 9, 2012
Panic buying is an interesting thing. Panic selling is people afraid of losing money "that's theirs" so panic selling comes from a place of not wanting to lose what you have. Makes sense. Panic buying is completely different and happens when you want to do something but don't and then watch the train start to move without you. You don't want to lose the opportunity, the chance. Ones based on fear the other's based on greed. Both normally end up poorly.
Friday, May 4, 2012
Unemployment report wasn't good and now the S&P is off about 10 points. The more interesting thing to me is the move down in oil. With the Fed dual mandate of full employment and price stability they've been saying we cannot do a lot to try and reduce unemployment with inflation at the high end of their acceptable range. But with oil prices moving down that can open up the easing window, so we're in that weird land of bad news maybe good news for stocks.
Thursday, May 3, 2012
So for the first time in a while the S&P was down for the last month. Not by much but GDP growth got pulled down, unemployment is looking worse so its back to bad news = stimulus and that's good. Why its good for stocks I don't know. It really depends on what happens QE3, tax cuts, job initiative each one plays out differently.
Thursday, April 26, 2012
Tuesday, April 24, 2012
Monday, April 23, 2012
Europe is still running the show. At one point this morning Spain's index was down 3% after the pmi numbers show higher contraction then expected. So the S&P still just goes with fears and hopes from Europe. So the original fear was Greece contagion, and its happening in a sense but giving the recent track record and statements I'd except a central bank move. The real question is will it help? With that, its tough to be long risk anything when the biggest economy, the whole EU, is shrinking.
Thursday, April 19, 2012
Monday, March 26, 2012
See if you can pick out where the morning Bernanke speech was.
Wednesday, March 21, 2012
I do like the argument made also. Basically buy stocks because bond's are going to suck. Really that's the whole thought out idea bond will go down so you have to buy stocks?
Thursday, March 15, 2012
So right now the stock markets back to that level we all know was a bubble in 08, so what's the justification now. I love all the articles about people staying out of stocks and are still afraid. What? Everyone is buying, everyone. That's why the prices are so high. Price goes up because more people are buying then selling. So the last time stocks got this high it was fueled by easy mortgage money now it's easy Fed money, so is that going to be different?
Tuesday, March 13, 2012
Friday, March 9, 2012
Wednesday, February 29, 2012
Monday, February 27, 2012
Friday, February 24, 2012
Oil up past 108 now, sweet $4 dollar gas again. I'm sure everyone misses those days. If that keeps going I just cannot see the headline inflation number allowing the Fed to do anything more. So Oil price is the new thing everyone will pay myopic attention to for the next couple weeks.
Thursday, February 23, 2012
Tuesday, February 21, 2012
Monday, February 20, 2012
For being a closed Monday everythings moving more then I'd expect. Oil's up over 105. That keeps going we'll see that CPI headline number jump quickly. We might be turning from the oil up means demand is up, which means the economy is improving, to oil is an input cost to production and higher is bad.
Wednesday, February 15, 2012
Got that QE feel again just a slow melt up with basically no down. The interesting part is that everything's up on what I can only think is inflation fears again? QE2 was the Fed buying 600 billion in Treasuries with an average duration of 7 years. So really the Fed swapped with the banks 600 billion in cash for 600 billion in bonds. How is that inflationary? No new money introduced 600 billion in assets and ended with 600 billion in assets, but everybody screamed hyperinflation so into stocks and commdities everyone went. So a similar move while not inflationary is being view as such and so the cycle repeats. But really the Fed doesn't have a choice now, if they pulled QE3 off the table the market would collapse. So it seems like a must do for them since we've got the doctrine of market declines can not be allowed.
Tuesday, February 14, 2012
Not even a 3 point range this morning on the S&P. High to lows are getting smaller recently. The money question is does this pause in upward momentum mean sideways or a top? If you watch most of the action is overnight or basically everyones still waiting for Europe to either stabilize or explode.
Thursday, February 9, 2012
Initial claims for unemployment keep getting better but is it from job growth or are that many people just running over their 22 months and falling off the map? With that the S&P keeps melting up. This rate we can be back to the 07 super bubble level by May and the Nasdaq can get back to 00', pets.com worth 30 billion level, too.
Tuesday, February 7, 2012
Friday, February 3, 2012
First thought with the NFP was, "hmm that's weird normally there's hiring for christmas then all those people are gone in January"? Good old ZH to the explainationing http://www.zerohedge.com/news/record-12-million-people-fall-out-labor-force-one-month-labor-force-participation-rate-tumbles-. This might kill the Fed's inject money idea since unemployment is a big part of the inflation number.
Wednesday, February 1, 2012
Tuesday, January 24, 2012
ES, S&P E-Mini futures, with the ZN, 10 Treasury future. Normally bonds go up stocks go down, or stocks go up and bonds go down. So bonds and stocks up together? I guess everybody was on the QE3 train, but in the last couple of days Treasuries are off so? I'm with this guy Yield Disconnect.