And We're Back... image

And We're Back...

By: David Moenning

I received a text last night asking a pretty good question; one that I thought others might be wondering about as well. The text read, "Dave, we knew the news was going to be bad, why does the market suddenly care?" From my perch, the answer is based on the concept of "expectation…
Putting The Rally In Perspective image

Putting The Rally In Perspective

By: David Moenning

From my seat, it appears that stocks are experiencing a "sigh of relief" rally (aka a dead cat bounce) here. As we've discussed, these rallies tend to be impressive (hence the headlines for last week's big gains) and make everybody "feel better" about the crisis at hand. The bottom line i…
More Questions Than Answers image

More Questions Than Answers

By: David Moenning

We've talked a lot lately about what I call "The Crash Playbook." In short, this is a guide developed since the mid-1980's on how market crashes/crises tend to play out. The premise for the playbook is, as the saying goes, "history doesn't repeat itself, but it often rhymes." The …
The Message From The Market Action image

The Message From The Market Action

By: David Moenning

Market analysts love to talk about "the action" that occurs in the markets. Many, including yours truly, believe that the manner in which the market moves - especially after important news - can provide a "message" about the current environment. To be clear, the action definitely does NOT…
My $0.02 On The Bounce image

My $0.02 On The Bounce

By: David Moenning

Stocks are bouncing higher this morning, so I thought I'd provide a quick, "my $0.02 take" on the action so far. From my seat, stocks appear to be rebounding based on the following... Word that China is going to lift the lock-down in Wuhan for healthy citizens on 4/…
Looking Ahead To Better Days image

Looking Ahead To Better Days

By: David Moenning

It is my sincere hope that everyone remains healthy, is being diligent with their social distancing, and is surviving the new virtual work world reality. Since my kids are now all adults and I've had a home office since 2001, my days haven't changed much - well, except for the daily marke…
The King is Dead. Long Live the King! image

The King is Dead. Long Live the King!

By: David Moenning

Well it's official, we've got a full-fledged crisis on our hands in the financial markets. Historic events now occur on a daily basis. Things I have never seen before in my 33-year career as a portfolio manager are now happening with regularity. Safety plays are no longer safe. The tech-l…
When

When "Good Action" Isn't And The Newest Problem

By: David Moenning

Things were not looking good on Friday afternoon. At 3:00 pm eastern, the major stock market indices were at the lows of the day and falling fast. The yield on the 10-year, which is viewed by many as a proxy for the economic outlook, had plunged again, this time closing the day at 0.706% …
The Panic Playbook: A Blueprint For Market Crises image

The Panic Playbook: A Blueprint For Market Crises

By: David Moenning

For investors of all shapes and sizes, the question of the day appears to be, now what? After the 14% thrashing of the Dow Jones Industrial Average in just seven sessions, one can't be blamed for feeling a little shell shocked. In short, these types of market panics can leave one disorien…
Fear Has Arrived. What's The Plan? image

Fear Has Arrived. What's The Plan?

Anyone thinking that the stock market would simply ignore the potential economic impact of the coronavirus pandemic is getting a wakeup call this morning. Instead of focusing on the bright side and the stimulus plans that have been bandied about in places like China, stocks are now in ful…