Tag: Federal Reserve System

Investors Pile Into PIMCO High Yield ETF

5/09/2017

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In stock market corrections, the Russell 2000 usually leads the other major indices lower.

Stock Market Correction and Waiting To Click The Buy Button

19/08/2017

The stock market correction is likely going to push the S&P 500 to test its long-term rising trendline and support at 232.20. The bearish divergence on the Twiggs Money Flow likely signals that the pull back is not over yet. A few traders have asked me if now is the time to buy or if Read More »

US dollar chart plunged after FOMC announcement on July 26, 2017.

FOMC Announcement Pushed US Dollar Down Big Time

26/07/2017

The dollar did a big drop today after the FOMC announcement left rates unchanged. The Federal Reserve said the reduction of the balance sheet will begin relatively soon. I think relatively soon means September 2017. The Fed seemed to indicate that “gradual” policy tightening will continue. The Federal Reserve will begin winding down the stimulus Read More »

Jolts Job Openings Down But Hiring Up

11/07/2017

The JOLTS Job Openings report showed U.S. companies posted fewer job openings in May but hiring picked up and people are quitting their jobs — both bullish signs for the economy. New government statistics show American companies have made progress filling their record number of job openings, as hiring rose in May while the amount Read More »

Best Bank Stocks To Buy Now That Fed Has Given Green Light For Dividends

28/06/2017

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Stock Market Today Is Half the Size It Was In 1996 Thanks To the Fed

27/06/2017

The stock market today is about half the size it was in 1996. In the U.S, the number of stocks has fallen by half in the past 20 years, from 7,322 to 3,671 last year according to a report from Barron’s (link above). Stock Market Today Is Half the Size Thanks To the Fed I Read More »

United States Economy Teetering On Collapse

25/06/2017

The United States economy is teetering, despite what the stock and job markets are saying. The US economy is consumption-centric. Growth in the current recovery has focused on three sectors that have fed through to consumption in its various forms: autos, energy, and financial services. The scariest set of financial indicators to emerge in decades Read More »

David Stockman Contra Corner

David Stockman Contra Corner Interview Warns Recession Is Coming

23/06/2017

David Stockman contra corner man, was interviewed by Boom Bust where he warned of the enormous storm coming that will slam into Wall Street. My notes from the interview are below. I think the odds by the day are raising that we’re going to truly have a government shutdown. Expect the mother of all debt Read More »

Interest Rate Policy May Be Too Tight As Evidenced By Inflation

21/06/2017

The Federal Reserve shouldn’t be tightening policy with the evidence so clear that it’s falling well short of its inflation mandate. The interest rate policy is wrong because their math is wrong. Right now the Fed’s inflation goal is 2 percent. Why so low? Fed rate hikes are keeping inflation too low and possibly will Read More »

Central Bank Balance Sheet Reduction Could Crash the Market

18/06/2017

The central bank balance sheet reduction could crash the market according to David Quintieri (link above). The Fed is engaging in its most dangerous policy move in the last 10 years with its simultaneous moves to raise rates and to unwind its $4.5 trillion balance sheet. One of the things I don’t understand about this Read More »

momentum trading against algos

Momentum Trading the Fed Announcement

15/06/2017

Momentum trading the June 14, 2017, Federal Reserve announcement is fairly straight forward with the 5, 10, and 20 period simple moving averages and the Parabolic Sar indicator. Momentum Trading Against the Algos It looks like the algo computer AI trading desks create a wave of volatility on the release of the Fed announcement. The Read More »

History Shows Stock Market Correction of 13 Percent is Normal

15/06/2017

Since the 1950s, a stock market correction of -13% is the average draw-down that happens each year. In an article on ETF (link above), Ben Carlson of Ritholtz Wealth Management warns that traders and investors should not get too complacent. Stock Market Correction Ben Carlson says that even in years when the S&P 500 ends Read More »