In this lesson you will learn who the “smart money” is, their trading habits, and how they move millions of shares without anyone noticing. These institutional trades are hidden inside of secret dark pools. You will also learn how amateur traders can profit from dark pool trading.
First, let’s start off with a good description (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….)
Traders get confused by price action in bonds relative to the stock market because of perma-bear websites like ZeroHedge. Folks, the most reliable signal for how bonds impact the stock market is very simple.
Look At Bond Prices
Your primary research into bonds should always start with bond prices first, then yields second. A bond (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….)
Goldman Sachs just hired exchange owner Nasdaq Inc. to run its dark pool Sigma X stock-trading system. The Nasdaq has spent years working on “Ocean,” its dark pool hosting service.
Dark pools are similar to standard markets with one big exception; they can hide their activity by not printing the trades to any public data (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….)
The prospect of a Federal Reserve rate hike is driving up the US dollar. The rising US dollar has a significant impact on the US economy and thus stock market. It’s important that traders understand the implications of a rising US dollar from a macroeconomic perspective.
Rising US interest rates mean that a lot of (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….)
Warren Buffett’s favorite measure of market valuation is to compare total stock market capitalization to GDP. Warren Buffett said back in 2001 in a Fortune Magazine interview, “it is probably the best single measure of where valuations stand at any given moment.”
Below is a ratio chart of stock market capitalization to GDP with the (Read More….)
Japan PM Abe’s Economic adviser Hamada said today that strength in the yen is damaging confidence in the Japanese economy and may hurt the BOJ. The mainstream financial media is reporting that Hamada said, “Unless the speculative forces in the foreign-exchange market that block the regular transmissions of monetary policy are corrected by the MOF, (Read More….)
Never underestimate the utter wickedness of institutional traders. The ‘Get Shorty’ trade is on. The way the trade works is that institutional traders stir up the bearish sentiment in the market by going out in the mainstream media and talking up doom and gloom.
In after-hours trading, they buy S&P futures causing the market to (Read More….)
The ISM Non-Manufacturing PMI index dropped to 51.4 percent in August of 2016, well below market expectations of 55. It is the lowest reading since February of 2010 as activity, employment, and new orders all slowed.
Here’s the real terrifying part. The last two times that the ISM fell below 52 percent, it was (Read More….)
The world’s largest funds are sovereign wealth funds used by countries to run an entire government and to provide social welfare programs for the people. Back in January of 2015, I wrote about the drop in the price of oil impacting sovereign wealth funds here.
It was inevitable that if oil did not recover quickly, (Read More….)
Last month I dropped coverage of GDPNow after the GDP forecast was dropped by a huge amount right before the actual GDP release. Immediately after the GDP release, they release a Q3 GDP estimate that was at 3.7% which supported the Fed’s yearly lie that the economy was set to strengthen in the second half (Read More….)
Deutsche Bank may be on the verge of collapse. Last week Deutsche Bank reported Q2 2016 earnings of 20 million euros which is a 98% drop in earnings year-over-year.
In 2015, Deutsche Bank announced its first full year of loss since the 2008 recession.
Deutsche Bank’s stock is down -60% over the last year (Read More….)
Last week was a big week for trader psychology with multiple economic reports showing the US economy was not in free fall. The Fed Funds Futures market is pricing in a 43.3% probability of a rate hike by December 14, 2016.
Below is a quick breakdown of the better than expected economic reports last week.
Mainstream financial media is publishing stories about how the market shouldn’t be this high. Watch out folks. Institutional traders have been making a lot of money off of pushing the idea that stocks are going to pull back at any time.
Amateur traders have been taking short positions against the market for more than a (Read More….)
U.K. commercial real-estate funds are preventing people from cashing out. UK commercial property investors are frozen in their trades after a record number of people have cashed out since the Brexit vote.
An estimated $12 billion of investors assets are now frozen. Golly gee, that’s not going to create a panic!
M&G Investments, Aviva AV, (Read More….)