Tech is radiating this year and small-caps are in slumber. A ratio between the Nasdaq 100 and the Russell 2000 is nearing a March 2000 record high. A failure here can begin a process of unwinding the overbought condition the … Continued
Small-cap bulls once again were forced to defend the lower bound of the 1700-1900 range in place since January last year. The Russell 2000 just does not respond to the optimistic growth forecasts in earnings for this year and particularly … Continued
US home prices continue to gallop ahead. There has been a marked increase in owners’ equity. This should buoy consumer sentiment and help the economy. The risk is when – not if – the trend reverses and goes the other … Continued
Massive growth in money supply could potentially lead to inflationary pressures. But the velocity of money is near record lows. As things stand, inflation expectations are perking up near term but remain suppressed further out. Chart 1 is forcing investors … Continued
As the FOMC winds up its two-day meeting today, one cannot help but think of the Fed put that has led investors to take on risk and go up the risk curve, driving one after another metric into uncharted territory. … Continued
Georgia Senate results have pretty much ensured a new round of stimulus money as well as a fresh infrastructure package. Stocks had a massive 4Q, with the S&P 500 jumping 11.7 percent. This helped push the price-to-sales ratio further into … Continued
Bulls last week defended support at 2600-2630 on the S&P 500, which has rallied massively since bottoming on December 26. Daily conditions are deeply overbought, pricing in a dovish Fed. A two-day FOMC meeting begins Tuesday. A ‘buy the rumor, … Continued
Post-Powell’s supposed dovish switch last week, equity bulls spent lots of energy to rally the S&P 500 within less than two points of the 200-day. If the trade-tariff truce the US and China reached over the weekend in Argentina is … Continued
The Fed’s dual mandate currently is a source of ammo for both hawks and doves within the FOMC. Would it always remain this way? Core PCE inflation has been ticking up a bit of late, but still below the Fed’s … Continued
CNBC.com ran an interesting story last Thursday (March 3rd) on resurging home flipping in the U.S. Turns out, according to RealtyTrac, nearly 180,000 family homes and condos were flipped in 2015, making up 5.5 percent of all sales. This was … Continued