Yet another week and yet another record in the S&P 500, although the Russell 2000 is not in confirmation. Sentiment is complacent, some metrics frothy. But it can get frothier. This also means buying protection is cheap. The US economy … Continued
The S&P 500 is itching to make a new high. The Nasdaq 100 achieved that feat last Friday. Lowered earnings estimates for the third quarter went a long way, among others. Bulls have momentum right now. Medium- to long-term, massive … Continued
Major US equity indices are within striking distance of July highs. Sentiment took a small hit in recent weeks and has room to rise. How markets react to lowered 3Q19 earnings estimates will decide if bulls will be able to … Continued
August for the most part saw bulls buy support and bears sell resistance. This worked out pretty well for both camps. In essence, after a late-July/early-August brief selloff, both put their foot down. Last week, major US equity indices rallied … Continued
The sell-side customarily has lowered estimates going into the 2Q earnings season. Stocks have rallied since early June, thanks also to an impending rate cut by the Fed later this month and resumption of trade talks between the US and … Continued
The FOMC meets this week. No change in expected. But in the remaining four scheduled meetings, markets have priced in at least two cuts. The Fed has a juggling act in hand. The unemployment rate is near a six-decade low, … Continued
Inventory burn likely weighs on growth in future quarters, casting doubt on the sell-side’s expectations for a pick-up in earnings growth momentum as the year progresses. This is a medium- to long-term issue. Near term, recapturing of 1600 on the … Continued
Major equity indices are within striking distance of fresh highs. Bulls hope the low hurdle in 1Q19 earnings helps put volatility under more pressure. Trader reaction to earnings is key. Major US equity indices are a stone’s throw away from … Continued
Kudos to equity bulls for pulling off an impressive reversal off of late-December lows. Major indices have now rallied for over three months, pushing them into extended territory. Looking at VIX futures, a lot of the good news is in … Continued
With higher lows since the December 2015 trough, gold finds itself right underneath major resistance. A breakout would speak volumes about the global economy and how major central banks would react in response. Near-term notwithstanding, gold bugs deserve the benefit … Continued