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 →
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 →
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 →
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 →
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 wage increase percentage, 0.6 % monthly, or 7.2 % annual is the big number in the report. Plus the economy is stalling.
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 →
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 →
Since the start of COVID we have seen a one factor market, Jerome Powell and the FED. Now we are seeing two more factors added to the market, a declining consumer factor, and the inflation factor. All this as fundamental…Continue Reading →
Chairman Powell is consistent, he is willing to keep expanding the bubble into the explosion. Embedded inflation is lurking and consumers are getting scared. Market interest rates will move to the front in this scene as the meaningless Fed Funds…Continue Reading →