A Resilient Bubble
This staging period may take some time. We have seen the initial downturn, the quick 21 day averages basically turned down and are now in kind of a mini bounce as we await the more important 50 day averages to…Continue Reading →
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Economics in Action with two updates
Yesterday and early today we saw the big guys trying to force a low interest rate FANG bubble play by buying both 10 year bonds and FANG stocks simultaneously. That took our indicator to 4.83 a number of times during…Continue Reading →
FANGS vs 10 yr rates – Update
For the time being this is where I am focused. See yesterdays post for chart and background analysis. We will keep you posted. Recent history of this ratio: Recent high : 8/4/21 5.13 Recent low: 8/12/21 4.26 Today at 9:30…Continue Reading →
Fangs / 10yr rates
As all the factors intermingle within the asset bubble, one thing that needs to be monitored is the aggregate value index of the Fang stocks versus the working 10 year interest rate. Here is the chart we watch in terms…Continue Reading →
There is No Worry
That is what we see today in the market as interest rates continue their move higher from Friday’s lows. Traders see no change in the big picture, they see a FED that has created this Bubble and is not expected…Continue Reading →
Altered States
To me the most overused phrase in the past year has been “New Normal”. What a joke. There is no new normal, only what I would call “Altered States”. Interestingly as government seems to believe that it can make everything…Continue Reading →
Setting up as a Classic Squeeze Top
Todays shocking employment report reaction is a classic in terms of how squeezed markets react. Usually a squeeze is carried out by private interests, but this government (FED) squeeze is a bit of a different animal. There are a lot…Continue Reading →
The Big Surprise today, Inflation
The wage increase percentage, 0.6 % monthly, or 7.2 % annual is the big number in the report. Plus the economy is stalling.
A Perverse Investment Philosophy
Following on the market actions of this week, the twitter guru’s, basically followers of Jerome, are saying COVID has been bad and is still bad, so this will give a poor employment number and Jerome will just keep piling in…Continue Reading →
The Analysis Theme
Continuing on with what I said a few days ago. For the last 16 months analysis has appeared to have no value, the Fed was willing to continue the “NO Consequences Economy”. What I mean here is that negative actions…Continue Reading →