Last week, equity bulls stepped up in time to save a rising 14-month trend line on the S&P 500. A similar trend line has been breached on the Nasdaq 100, which acts weak. It is just a matter of time … Continued
U.S. equity indices are near all-time highs. One would logically think retail investors would be all in, that foreigners are actively taking part in the rally, and that traders are making use of margin debt as never before. None of … Continued
U.S. stocks began 2016 on the wrong foot. That is an understatement. In fact, major indices peaked intra-day on December 29th (2015). Using that high, the S&P 500 large cap index through the intra-day low on January 20th lost 13 … Continued
Yesterday came news that U.S.-based funds attracted $36.5bn in stock inflows in the week ended December 24 (courtesy of Thomson Reuters Lipper Service). Some thoughts on this: 1. The inflows are simply massive. There is no other way to describe it. … Continued
One valuation tool equity bulls consistently use to justify current stock valuations – as well as to argue for further multiple expansion – is by comparing bond yield to earnings yield. There is a metric known as ‘bond equity earnings … Continued
One of the common themes that we so often hear is that there is a lot of dry powder still left to push stocks higher. Bulls have been steadfast in holding on to their gains. Yes, there were sell-offs in … Continued