In one of the most shocking examples of left-leaning media bias so far in 2017, CNBC quoted Ethan Harris, head of global economics at Bank of America Merrill Lynch, as saying, “He’s [President Trump] taking over at a pretty good time. The economy is at full employment; wages are beginning to accelerate. You’re not in (Read More….)
The weekly Saturday night stock market prediction show attempts to predict market direction for the week ahead by looking at a variety of technical and fundamental indicators.
The top catalysts and stock picks posted on the GuerillaStockTrading blog are reviewed on the show.
This week’s show features commentary on the so-called “Trump Bump” and what (Read More….)
Barron’s just released a cover story that suggests that President-elect Donald Trump should take steps to make U.S. trade policy freer than it is now after a backslide during the past 15 years. Barron’s goes on to assert that any aggressive push by Trump to hike tariffs will face resistance from a Republican-dominated Congress that (Read More….)
The high yield debt chart is very troubling IMO. If we overlay the S&P 500 and the high yield debt chart, a huge bearish divergence is revealed. Check out this chart with the red line being the S&P 500 and the purple line being high yield debt.
High yield debt (purple) is nowhere near (Read More….)
A trade war between the US and China is likely going to start next year with a key promise of Trump to declare China a “currency manipulator” on day one of his Presidency and to enact a 45% tariff on certain Chinese produced products sold in US markets.
China has threatened to retaliate by dumping (Read More….)
We know what Trump is bringing to the globalists brawl that has already begun with shots like China threatening a trade war against the US. Globalists are not going just to roll over quietly for a Trump Administration.
Lisa Haven thinks that globalists could crash the US economy in response to Trump’s win. Lisa thinks (Read More….)
I’m of the belief that one reason stock markets smashed all-time high records this week is from the massive short covering going on that led up to the Presidential election on November 8, 2016.
You had billionaires like Warren Buffett and Mark Cuban suggesting that they took short positions in case of a Trump win. (Read More….)
Whether we are talking about individual stocks, the stock market, or the economy, when you’re wrong just admit it and then move on. The goal is to make money, not to be right 100% of the time so you can stroke your ego.
AM TV and Peter Schiff predicted that the Federal Reserve could not (Read More….)
For the week, the DJIA gained 0.1%, the S&P 500 rose 0.8%, and the Nasdaq climbed 1.6%.
Economic data and Federal Reserve commentary virtually sealed the deal that a rate hike is coming at next month’s monetary policy meeting.
Trump needs to fire Yellen IMO. Trump has pledged a $1 trillion infrastructure spending program to (Read More….)
Let’s use microeconomics to examine subsidies and why I recommend everyone stay away from investing in China.
Let’s start off with a perfectly competitive market where equilibrium is set at P and Q on our supply and demand graph.
A subsidy is an amount of money given directly to firms by the government to (Read More….)
I predict that a Trump win means down for the economy at first, then upward as the US consumer strengthens from domestic job growth.
The down first move in the economy will come from inefficiencies caused by forcing multinational corporations to bring domestic production facilities back to the US or face steep tariffs.
Several traders (Read More….)
We pulled off an incredible victory of getting Donald Trump elected. Congrats guys, we did it. Now the first point of focus is the backward bending Laffer Curve. Thanks to the reckless policies of Democrats and Obama, the national debt is up to almost $20 trillion dollars. The horrible national debt leaves Trump with little (Read More….)
Increases in government regulation, taxes, environmental regulations, and ObamaCare on businesses, shifted the aggregate supply (AS) curve inward and thus reduced aggregate demand (AD).
With the explosion higher in the cost of doing business, businesses hired fewer workers. In fact, many small businesses reduced the size of their workforce in response to ObamaCare. Less (Read More….)
For the week the S&P 500 fell -1.9%, the DJIA fell -1.5%, and the Nasdaq plunged -2.8%. Last week the VIX shot back above 20 to trade at levels not seen since the June Brexit vote. The S&P extended its longest losing streak since 1980 with its ninth consecutive decline on Friday.
Oil was (Read More….)
The Federal Reserve held short-term interest rates steady as traders expected. In the Fed’s postmeeting policy statement, it said it only needed “some further evidence” of economic progress before moving forward with a rate hike.
What exactly is the further evidence that the Fed needs? To answer that, you have to know about what (Read More….)
As traders, we track the monthly Employment Situation report closely. The market often does a short-term move on the first Friday of every month when the Employment Situation report for the previous month is released. Do you understand what the Employment report is showing? I bet many traders do not. As traders, we have to (Read More….)
Albert writes, “Hi Lance; you had another great show tonight. A couple of questions if you don’t mind. First is, I read on your website that you think STM might be a good long term trade. Aside from margin issues (if one doesn’t buy on margin), do you think it’s still a good long-term stock (Read More….)
Do you remember when the WSJ, CNN, CNBC, NBC, ABC, CBS, Bloomberg, Forbes, and Reuters ran stories at the start of the year about how no one even knows who was advising Trump on economic matters? They even went as far to say that Trump had no support of any economists.
That never sat right (Read More….)
Inflationary expectations are the expectations that consumers have concerning future inflation. If buyers expect higher prices in the future, they increase their demand in the present. This shifts the aggregate demand curve outward (to the right) which is good for the economy. For example, if the price of a house is expected to be higher (Read More….)
Most government revenue comes from the taxation of transactions and labor. Taxes impact both the supply and demand curves. Taxes cause a buyer to pay more for something and suppliers to receive less. The loss of value for both buyers and sellers is called the deadweight loss of taxation. Taxation has an enormous impact on (Read More….)
Saudi Arabia is now offering an international bond that yields 4.6%. The WSJ writes…
The $6.5 billion 30-year portion of Saudi Arabia’s bond is set to pay 2.1 percentage points more in yield than a comparable U.S. Treasury, or around 4.6%. That is a sizeable pickup in a world where developed-market bond yields are on (Read More….)
We have enough data to say that inflation is finally trending higher.
In case you are wondering why inflation moving higher is important, please review this.
The less volatile sticky CPI confirms the uptrend.
ObamaCare has exploded the cost of medical care higher.
Medical care commodities, which are prescription and (Read More….)