Remember the Taper Tantrum in 2013? Seems like a distant memory. But the U.S. Fed floated the trial balloon that they would start tapering bond purchases from their QE highs of about $85 billion a …
Continue readingXLE – Oil Change
ZIRP
MorningWord 7/11/16: Such Great Heights… Depths
Fears of a recession in the U.S. following the late June Brexit vote in the U.K was one of the main reasons for the 5% drop in the S&P 500 (SPX) and the new lows made …
Continue readingMorningWord 6/2/16: A Wile E. Coyote Moment
ECB and OPEC are the stories of the day. Sadly, I have little intelligent to add. So I won’t attempt to opine on what Mario Draghi, or the Saudi’s did or didn’t do. All I …
Continue readingMorningWord 4/20/16: $INTC Briefing
Intel (INTC) reported Q1 results and forward guidance last night after the close. While the Q1 results hit the previously lowered estimates, Q2 sales were guided to $13 to $14 billion, below the consensus of …
Continue readingMorningWord 4/6/16: Get Shorty
This morning, Bloomberg reported on short interest in U.S. equity markets reaching levels not seen since 2008, with the suggestion that this could serve as a contrarian set up, quoting Fundstrat Global Advisor’s Thomas Lee, who opined: “There’s …
Continue readingMorningWord 3/28/16: Under the Big Top?
In case you missed it, on Friday, Q4 2015 GDP was revised, per Bloomberg: Another Bloomberg story, dissecting the Q4 GDP, lays out a concern: Yet beyond the headline number, there is a reason for some …
Continue readingMorningWord 3/16/16: Preparing a Bubble Bath
It’s been exactly three months since the U.S. Federal Reserve raised interest rates from zero. A lot has happened since then in global financial markets, but looking at the year to date performance of some …
Continue readingMorningWord 3/15/16: Dollar Bill Y’All
Much of the volatility in global risk assets since mid 2014 is a result of 20% rally in U.S. Dollar (DXY) from its May 2014 lows to its March 2015 highs: The DXY rallied as …
Continue readingMorningWord 3/9/16: Viking Quest
The stock market volatility in January and February was largely the result of investor fear that the deflationary pressures of crashing oil and industrial commodity prices would move the global economy closer to a recession. …
Continue readingWhere Credit is Doo – $HYG
Earlier today in my MorningWord I highlighted the conundrum of the data dependent U.S. Federal Reserve, faced with U.S. economic data hitting their prior targets for employment and inflation and the possibility for renewed tightening, vs the …
Continue reading