Let the Market Free!

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The market is still hanging tough, even after a rather dismal GDP report. Remember, an “official” recession is two negative GDP quarters in a row; we just had a whopper drop of negative 1% last quarter. Yet the market didn’t seem phased at all, in fact it started rallying? Makes no sense to some unless Read more…

Blowing Bond Bubbles

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The 10-year bond yield is getting more attention today. One can certainly not ignore the yields, no matter how much the media pundits would like to spin the economic data. The problem is that with a strong economy, the winding down of QE and an anticipated rise in rates, expectations are for the long-term bond Read more…

Bonds tell a different story.

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The market continues to push higher and we are right at those break-out levels again. The pre-market futures show a possible a break-out, but will it just fade like the last one? With bond yields heading down again, which seems odd in spite of the taper, I can’t help but wonder if we will see Read more…

Putin’s Rhetoric

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As we hover and wait for either a break-out rally or a crack-down below support, the Ukraine and Russian President Vladimir Putin are grabbing headlines. While the situation in the Ukraine may seem like it’s in some far off place, it does have a direct impact on the domestic financial markets, so we must pay Read more…

Don’t Drink the Kool-Aid

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Dow Jones fell over 100 points yesterday and tested that critical support, only to bounce the next day and move right back into this range bound market’s sweet spot. Focus has recently shifted to the 10-year yield (which has been holding up above 2.6% for the last 10 months) ever since the taper possibility became Read more…

Playing with Half a Deck!

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We are in the lull, the waiting period, hoping that either top-line sales and domestic revenues pick up or that the Fed tapers their taper (continues QE). The political machine is quiet for now, so is the Fed, and all eyes are laser focused on the mid-term elections this fall. Earnings thus far have been Read more…

Talk Doesn’t Cook Rice!

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It’s not about the economy as much as it is about the Fed monetary policy. We continue to circle back around to debating the strength or weakness of the economic recovery, pointing to one data point or another. However, economic data, good or bad, is not driving the market; the Federal Reserve’s monetary policy is Read more…

Economic Spin Zone

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Have we put a new support level in here or is this just a fake out and retracement? While that is certainly a valid question, the answer really depends on which index you are monitoring. The Russell stalled heavily over the last two days and is back down to its lows, testing a significant support area. Read more…

Hidden Inflation

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Yesterday’s action was interesting to say the least. We had the Dow Jones and S&P 500 pushing to new highs in what looked to be a break-out and then we saw the broad-based index, Russell, actually decline over 1%. So we face another conundrum, are we in a REAL break-out or is this another head-fake Read more…

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