— No question … The market is overextended — Well known investor sentiment surveys are flashing red — Calls for caution become routine — How should you react? — Best advice … maintain the long view … the secular bull continues The market is over extended There is no question about this. During the month…
Tag: wall Street
The crisis abates … Yeah, Right!
The Ecstasy, The Agony and Back It is hard to believe that only fifty days have passed since the S&P 500 posted a record high of 3393.52. As of this past Thursday the index closed at 2789.82, down 18% on the year and up 28% from its March 23, low of 2191.86. Needless to say,…
“Damn the torpedoes … full speed”…ahead!
My title today derives from a quotation attributed to rear admiral David Farragut during the 1864 Battle of Mobile Bay. The actual sequence went more like this: “From his high perch, where he was lashed to the rigging of his flagship, USS Hartford, Farragut could see the ships pulling back. “What’s the trouble?” he shouted through…
“Buy, Sell or Fold” — A market history and MLP retrospective
A Glance in the Rear View Mirror In March of 2013, I penned my 14th edition of kortsessions.com, “Buy, sell or Fold?”. We had just broken definitely above the previous record high ( March 2000, s&P 500, 1550). The actual record high did occur in October 2007 (1576) but it was a very short-lived move…
“Don’t celebrate the Dow record too much” or doubling down on a bad call
The bad call was the header of my last week’s post, “The wrong kind of stocks are leading the stock market to records.” What kind of stocks might those have been? They were defensive stocks … healthcare, utilities, REITs. Why was this bad? It was a sign the smart money was fearful. And that’s not…
A Lethal Combo: PMI at a 10-year low + Slowing Job Growth — NOT!
Flash! Dow looses 800 points in 2 Days Here we go again, more selling based on market news items reported without contextual backup. Purchasing Manager’s Index (PMI) for September Worst in a Decade 50.2% was the expected reading. 47.8% was the actual number. Any reading below 50 is considered to be indicative of a slowing…
Impeachment: Precursor and Aftermath
Introduction In this discussion the potential market impact of the run-up to an impeachment proceeding and the impact of an impeachment trial and removal from office of president Trump, I will do my best to keep it apolitical and factual. I will be speculating about possible outcomes and their impact on the market and the economy. I…
“Bond markets are sending one big global recession warning“
You have to be kidding me! This headline from CNBC greeted me this morning and appears to give us a significant reason for the Dow Jones, S&P and NASDAQ indices suffering a sharp decline today. It is just one more instance of media hype on two non-sure-things … a recession is imminent and that a…
“The president is the Yankees and Powell is the Toledo Mud Hens.”
Thus spake Jim Cramer … Wednesday morning June 19. Previously in the “Squawk on the Street” segment he opined, “Powell is living in a conventional world,” not the World of Trump. Powell’s conventional world is a place where you try to get the near-impossible (monetary policy) right. It is a world that involves meticulously working…
Pre-emptive Fed Strikes + Having It Both Ways
Dumb and Dumber Just when you thought media/pundit commentary on the market and the economy couldn’t get anymore inane and stupid, they surprise you by plumbing a new depth. This article from CNBC, “These charts show how Fed Chair Jerome Powell is the most important thing to the market now,” is a solid gold example. Of…