The title of the accompanying chart says it all. Despite all the talk behind the ongoing de-leveraging, facts point us to a different reality. Compared to 2007, the outstanding U.S. bond market debt is higher, not lower – $40.4tn in … Continued
The S&P 500 acts well. Since it found support at its 150-day moving average early February, it has appreciated 12 percent – that is in four months. In the process, it now has carved out support levels at 1900, 1885 … Continued
Breakouts are galore in U.S. equities. Of the three major indices, the S&P 500 and the Dow Industrials have managed to push into record territory. The Nasdaq is a laggard – yet to get past early-March highs. Ditto with the … Continued
The euro so far is trading exactly as expected. ECB President Mario Draghi did not disappoint. Yesterday, the refi rate (main lending rate) was cut to 0.15 percent from 0.25 percent and the deposit rate to negative 0.1 percent from … Continued
AAPL as a stock is back in the game. From its $677 mid-September 2012 all-time high to the mid-April 2013 low of $374 to last week’s high of $644, it has nearly done a round trip. Recent sell-side commentary has … Continued
The euro experienced a rather sharp downward move in May. In the currency world, the two-and-a-half-percent decline (from early in the month until the trough two sessions ago) in a span of 15 sessions is big. When FXE began to … Continued
Sales of new homes are struggling to maintain their earlier momentum. The three-month moving average flat-lined for nearly a year before peaking at 448k (SAAR) in January this year. Those for sale (supply) has been gradually inching up as well … Continued
Nasdaq stocks are attracting some bids. As has been the case for so long, volume continues to remain uninspiring, but price action overrides all. For now. The index has managed to trade north of its 50-day moving average, and has … Continued
Non-commercial futures traders’ bet in recent weeks on a declining VIX was spot-on. Toward the middle of March, these large speculators were net short a mere 1k contracts. VIX (spot) was around 15 at the time. Technically, there was room … Continued
Any economist or investment professional who knows a thing or two about what is going on in the U.S. job market knows not to be misled by the rapid decline in the unemployment rate. From the cycle high 10 percent … Continued