State of the Markets
There Is a Sixth "E" to Worry About
As of Tuesday afternoon, the stock market was struggling with "The Five E's". Traders were fretting about the potential impact of Ebola, Europe's sinking economy, the big dive in
The Problem Are The Five E's
Identifying the drivers of stock market action can be helpful in determining when a move is overdone and due to reverse. For example, the various wannabe crises that have cropped up over the past two years have all fizzled out in short order as investors realized there was nothing major t…
Should You Worry About the 200-Day Break?
For much of Monday, the S&P 500 traded in a relatively narrow range with the market appearing to be searching for direction. After a decline of more than 5% over the past few weeks, most traders were looking for a bounce. After all, every single time the market had "dipped" over the p…
An Awful Lot To Consider
Anyone expecting a quiet Columbus Day Holiday in the markets (where stock markets are open but banks and bond markets are closed) will likely to be disappointed as the news flow over the weekend and the early action in the futures market suggests that last week's volatility could continue…
This Time The Worries Are Fundamental
Wow, what a week/month it has been so far. Students of market know that October has a reputation for increased volatility. And cutting to the chase, this October is certainly living up to that reputation as we've seen wild swings in the major indices each and every day this month.
Slow Means Go After Fed Alters Its Outlook
Until yesterday, traders worried that the Fed might increase rates sooner than expected. Until yesterday, traders were concerned that the recent good economic news might wind up being bad news for the stock market. And until yesterday, traders fretted that the Fed might make a mistake.
Are Things Really and Truly Different This Time?
Yesterday's trash-job in the stock market has bearish analysts telling anyone and everyone who will listen that this time it's different. This time, the bounce and the expected "V" bottom failed, we're told. This time, the technical damage is just too great. This time, there are huge dive…
It's a Good News/Bad News Situation
The big news this morning is the continued weak economic data out of Germany. As if yesterday's surprising dive in manufacturing orders (orders fell -5.7% in August) wasn't enough, today's report on Industrial Production was also much weaker than expectations and hit the lowest level in m…
7 Dips, 7 New Highs. Will This Be Number 8?
What a difference a day (or two) makes in this business. Last Wednesday, the sky was falling and the bears were adamant that this time things were going to be different. Those seeing the market's glass as at least half empty were confident that one of the longest bull markets in history w…
Yet Another Dip-Buying Opportunity, Right?
The volatility continued on Thursday as investors were treated to a yet another in what has been a string of wild rides. For example, the futures had pointed to a modest rebound at the open of trade on Wall Street yesterday. However, within an hour, the Dow was down triple digits, the S&a…