Price discovery used to be a process of buyers and sellers determining fair value for an asset. Now, it’s only about supply of money vs supply of stock…even bankrupt stock.
But 20% unemployment and Nasdaq is at all-time highs…who would have thought?!
Like many people I speak with, I’m “mentally bearish”. The stock market is rallying, the Nasdaq nearing is new highs, while retails sales and industrial production are plummeting and we have 36 million unemployed. None if this “gels” with me. But I’m a technical trader and I don’t want to fight the tape. So what […]
The past two months has been a showdown between the real economy vs the Fed. So far, the Fed is winning. Are there any good reasons to expect that will change in the near term?
What are the VIX, the Nasdaq and Bonds trying to tell us?
The Economist magazine is famous for publishing magazine covers that prove to be great contrary indicators. If the latest Economist cover is anything to go by, we should expect Wall Street and Main Street to re-couple soon. What we don’t know (yet!) is whether the economy will catch up with the stock market, or whether […]
Amid huge volatility, records have been broken in the stock market over the past couple of weeks. Is this a buying opportunity or is there more pain ahead?
“Is the selling over?” This is a question nobody can answer with any certainty. But in financial markets we are only ever dealing with probabilities, never certainties. And from my viewpoint, the probabilities strongly favour at least a short-term bounce from here.