FOMC Control the Narrative

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Where is the market rally? A surprise 4% GDP an accommodative FED and FOMC statement – why is the market not rallying? The market did get an initial jolt higher and then proceeded to sell off for the rest of the day. For those that only pay attention to the headlines it certainly seems puzzling, Read more…

GDP Kool-aid?

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Today is a one-two punch with the initial GDP and the FOMC; it will most likely inject volatility into the market. Whether these injections of volatility will or can create a continuing bullish trend or correction is a little too early to tell. My basic assumption, regardless of the data, the Fed monetary policy will Read more…

Earnings: AET, MRK, PFE, and UPS

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Today we kick off the two day FOMC meeting and the media economic wonks are already hypothesizing the outcome. No doubt there is some disagreements inside the Fed, which have become vocal (see Fisher’s WSJ article yesterday). I am sure Yellen was very appreciative of Fishers OpEd right before the meeting. Is the Fed to Read more…

Silly Season

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Could it be a volatile week? With the FOMC meeting, first look at 2nd quarter GDP, and the monthly Labor Report we could be setting up for some volatility and also the beginning of the Silly Season of the mid-terms. On top of the three expected events, we still have a high level of geopolitical Read more…

Earnings: SBUX & V

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The Dow Jones seems to be stuck at 17,000. Perhaps it is waiting to get the blessing from the Fed? It seems that market has ignored Earnings (good and bad), ignored geopolitical instability (Israel and Ukraine), and even recent economic data. I was recently discussing this interesting phoneme with another fund manager, he conclusion was Read more…

Earnings: GM and Ford

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I believe, despite some big earnings names, the week will remain in a low volatile range, barring any geopolitical explosions. The market seems poised to go higher, but the confidence boost will not come from economic data, not even earnings. What the market wants to hear is the continuing accommodative blessing from Janet Yellen and Read more…

Earnings: AAPL MSFT

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The top-line CPI-U at 2.1% (“Core” at 1.9%) was for the most part ignored yesterday, as some big name earnings reflected some disappointment on top-line revenue/sales on the domestic front. Companies like Comcast and Verizon are in a game fighting over slices of the same pie as their market penetration is already hitting maximum potential. Read more…

Earnings: KO, MCD and UTX

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We are at the start of the earnings season and we are also waiting for some big names after the close; Apple and Microsoft. While the bottom line is always important, what we really need to pay attention to is the topline revenue and sales. We have seen over the last few years with the Read more…

Convolution of Complacency

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I am back after a much needed vacation with the family. While things have been relatively quiet on the economic front, the conflict has escalated in both the Ukraine and Israel, which has increased pressures on oil prices as well as European markets. However, the US seems to have ignored the geopolitical issues and continues Read more…