Dear Fellow Expat, If nothing else, the hurricane gods have a sense of humor. I'd planned a trip to Baltimore this month… and now I'm in a pickle. Another storm is fast approaching the Florida Republic. I've bumped tomorrow's flight up from 7 PM to 10:15 AM. I hope I can beat the wind and […]
Category
Stock Market Today
Trying to Reason with Hurricane Season: Here's How to Spot a Volatility Cycle
Dear Fellow Expat, If you’d have told me that the state with the highest total of tropical storms to start the season was California, I’d have accused you of having too much Long Drink this weekend. But that’s the score. California 1 – Florida 0. I’m sure that California Governor Gavin Newsom is proud that […]
Strong Housing Market, AI Rally and Sticky Inflation
Stocks lost steam on Tuesday after a rally driven by the artificial-intelligence hype drove the market to its highest since August 2022.During the day Nvidia (NVDA) briefly joined the trillion-dollar club, only to fall back to its lows of the day.Hard to say if the AI driven rally is over, but buying Nvidia at $400, might be a tough pill to swallow for many, including Chris Johnson as he shared yesterday.
Debt-Ceiling Deal, Consumer Spending and the Fed
The debt-ceiling negotiations are front of mind for most people (that..and probably AI stocks), but don’t expect too much of a reaction to the debt-ceiling agreement.Equities already rallied hard last week, meaning much of the good news is baked into prices, and expectations of another Federal Reserve interest rate hike should further dampen upside..
Tech Stocks Recapture their Old Mojo as Important Numbers Emerge
U.S Stocks ended mixed on Thursday, with tech stocks leading the way.Nvidia Corp.(NVDA) soared 24%, now sitting squarely as the 5th largest public company in America right behind the trillionaire club.These gains are yet another sign that investors are willing to invest in promising tech stocks, despite the growing worries of a US debt default and impending recession, high interest rates, inflation and a slowing Chinese economy.
Futures Rally on Nvidia Despite Fed Minutes and Debt Ceiling Worries
U.S.stocks fell for the second day in a row as negotiations over raising the debt ceiling continue to weigh on sentiment.The Dow Jones fell over 200 points along with the S&P 500 and Nasdaq following suit.We could see a nice rally off the back of strong earnings from Nvidia if any positive news comes out of debt-ceiling talks between Biden and McCarthy.
Consumer Prices Slow and What That Means for The Fed
Wall Street’s indexes rallied Tuesday morning, led by the Nasdaq, which jumped over 3% after consumer prices rose less than expected and raised hope that the Federal Reserve could slow its pace of rate hikes.But the fade in the indexes tells the bigger story..
The fact is Tuesday’s report doesn’t change anything and let me tell you why…
Here’s How to Trade the Producer Price Index (PPI)
Producer prices in the United States rose in November by more than forecast, showing once again just how sticky inflationary pressure is.We now have more support for our argument that the Fed is nowhere near done with rate hikes..
The Fed Is Nowhere Near Done with Rate Hikes
Last week, the market told us exactly why we should stay short as the jobs report and personal-consumption-expenditures (PCE) index both showed growth.This morning we saw a continuation of this trend as the Services ISM surprised analysts to the upside, delivering a 56.5 reading versus an expected 53.5.
Here's what could happen next...
This Bear Market Rally Could Prompt a 2001-Style Crash
If you’ve been in the markets for a while, this will seem reminiscent of 2001, when Alan Greenspan’s Federal Reserve cut interest rates from 6.5% to 2% over the course of one year.At the time, the stock market collapsed.This is what Powell needs to avoid..but possibly won’t..