Trying To Decipher Message From Stocks’ Horrible Start To Year

posted in: Economy, Equities, Technicals | 0

While there are some signs of near-term capitulation in equities – further raising odds of continuation of rally post-Wednesday reversal – it is perhaps also time to ruminate over why markets started the year all jittery and restless. From intra-day … Continued

Central Banks Trying To Put Mr. Market On Notice?

posted in: Credit, Currency, Economy | 0

In the past couple of weeks, there have been three important developments on the central-banking front, including the first hike by the Fed in nine years (Chart 1). It is too soon to say with conviction, but are major central … Continued

CoT: Peek Into Future Through Futures

The following are futures positions of non-commercials as of December 1, 2015.  Change is week-over-week. 10-year note: Will it or wouldn’t it?  Will the Fed switch into a tightening mode in the face of U.S. manufacturing just entering contraction? In … Continued

TLT Weekly Short Put — Willing To Go Long Near Three-Year Support

posted in: Credit, Derivatives, Economy, Technicals | 0

Two-year Treasury yields – supposedly the most sensitive to Fed policy – are acting as if they are beginning to price in a December hike.  On October 14th, the two-year Treasury bill yielded 0.57 percent; by November 6th, the yield … Continued

Inflation/Inflation Expectations And Fed’s Desire To Hike On Divergent Paths

posted in: Credit, Economy | 0

“The assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.” The above is from the October 28th FOMC statement … Continued

Fed Wants/Expects Uptick In Inflation, Markets Do Not Foresee One

posted in: Credit, Economy | 0

“Most of my colleagues and I anticipate that it will likely be appropriate to raise the target range for the federal funds rate sometime later this year and to continue boosting short-term rates at a gradual pace thereafter as the … Continued

Fed In ‘Heads You Win, Tails I Lose’ Situation

posted in: Credit, Economy | 0

The Federal Open Market Committee begins its two-day meeting today, the significance of which cannot be stressed enough.  A lot is riding on this.  After this meeting, there will be two more left this year – one late October and … Continued