Bulls Put Foot Down Near Major Support At 1990 On S&P 500

Equity bulls put the foot down where they could possibly have.  Support at 1990 on the S&P 500 large cap index was defended on Monday (Chart 1).  This followed a post-Brexit 5.3-percent dive in just a couple of sessions.  Using … Continued

Amidst S&P 500’s 3.6% Fri Tumble, Looking For Signs Of Reversal N/T On Spot VIX

Last Friday, post-Brexit win, the 10-year Treasury yield declined 16 basis points to end the session at 1.58 percent.  It fell as low as 1.53 percent at one point during the session.  The drop ensured 10-year yields remained below support … Continued

FXE Covered Put Instead Of Covering Short

The April 21st European Central Bank (ECB) governing council meeting was anti-climactic. The deposit rate on lenders’ reserves parked at the central bank was maintained at minus 0.4 percent.  As well, Mario Draghi, ECB president, continued his oft-repeated ‘all policy … Continued

Can Spot Gold Break Free Of Descending Triangle Pattern It Is In?

Spot gold is at a critical juncture. Since the metal troughed on December 3rd last year through the March 11th high, it rallied 23 percent.  Even before that high, gold had been in a sideways pattern since it spiked 4.1 … Continued

Fed Up — Doing Same Thing Over And Over, But Expecting Different Results!

Three months.  That is all it took for the Fed to do a 360. In the middle of last December, the fed funds rate was raised for the first time in nine years – to still-zero-bound 37 basis points.  The … Continued

CoT: Peek Into Future Through Futures

The following are futures positions of non-commercials as of February 23, 2016.  Change is week-over-week. 10-year note: Negative interest rates have suddenly become the topic du jour.  Last month, Japan waded into negative interest rate policy (NIRP).  This was totally … Continued

Negative Interest Rates As Panacea Fresh Wishful Central Bank Thinking?

posted in: Credit, Currency, Economy | 0

Negative interest rates have been in the headlines for a while now.  Since Janet Yellen’s, Fed chair, Congressional testimony last week, it has been doing so with increasing frequency. Does the Fed even have the legal authority to use negative … Continued

Markets Not Worried About Inflation Intermediate-Term, They Are Probably Right

posted in: Credit, Economy | 0

The Federal Reserve would like some inflation.  In fact, every major central bank would.  Or, for that matter, every debtor would – be it an individual, a corporation, or a sovereign nation. For debtors, a little inflation goes a long … Continued

Scenario In Which U.S. M2 Money Velocity Continues Lower

posted in: Credit, Economy | 0

If a chart gets retweeted 86 times, it is safe to say that the topic in question has touched a nerve in Twitter finance. The chart above had that distinction.  The topic it highlighted thus deserves a post.  So here … Continued

Markets Looking For Hints Yellen Put Alive And Well

posted in: Credit, Economy | 0

Later today, markets will learn if, when it comes to the so-called Fed put, it is game as usual or winds of change are beginning to blow. The Fed put refers to a practice of reducing interest rates to deal … Continued