Stocks Rally Off The 200 Day Moving Average

Stocks Have A Huge Reversal The stock market reversed sharply on Monday. The S&P 500 was up 2.72% as it bounced off the bottom of the recent range. As you can see from the chart below, it also bounced off the 200 day moving average which was hit on Friday. As I said last week, the…

2nd Half Of 2018 Should See An Economic Rebound

GDP Growth Is Probably Weak In Q1 It appears by most accounts Q1 2018 won’t be a great quarter for GDP growth. Keep in mind, the expectations have been high because of the tax cut and subsequent fiscal spending increase. The latest $1.3 trillion budget, which was passed on Friday, has an $80 billion increase in…

Stocks Falter Because Of Rate Hikes & Tariffs

Stocks Falter Early in Fridays’ trading session it looked like the market was going to rebound or at least stabilize from the terrible selloff on Thursday. After 2PM, the selloff intensified as the S&P 500 closed down 2.10%. It looks like the only thing that stopped the S&P 500 from falling below the correction bottom was…

Stocks Crater On Tariff Announcements

Stocks Crash & The Long Bond Rallies Thursday was a horrible day for the stock market as the S&P 500 fell 2.52%. It is now down 7.98% from the all-time high. It’s only up 2.43% from the correction bottom in February. The market is now down for the quarter which is over next Friday. The VIX…

Yield Curve Steepens After Fed Meeting

The Markets’ Reactions To Fed Decision The Fed raised rates by 25 basis points and increased the guidance for rate hikes in 2019 and 2020. I consider this to be a hawkish decision. We’ll go over the wording of the statement in this article, but first let’s look at the markets’ reactions to this decision…

Fed Hikes & Raises Forward Guidance

Fed Raises Rates In A Hawkish Hike As expected, the Fed raised interest rates by 25 basis points. In my opinion, the hike was hawkish because the Fed was one vote away from switching its expectations to 4 hikes this year instead of 3. My expectations have been slightly more dovish than the street because…

Yields Rise As Markets Await Fed Meeting

Stocks Rally Slightly The S&P 500 was up 0.15% on Tuesday. It’s surprising to see the Nasdaq was up 0.27% since Oracle was down 9.5% on weak guidance and Facebook was down 2.6%. The S&P 500 is almost exactly in the middle of its range. I’ll say the range started on February 9th which was the day…

The Media Strikes Back Against Facebook

Facebook Continues Its Decline Facebook stock was down 2.6% on Tuesday as the headlines about the Cambridge Analytica story swirled. I have a new perspective on the story which I don’t think others have covered. This situation is all about stakeholders in the company. Facebook will have an extremely tough time satisfying stakeholders because almost…

Stocks Fall As February Economic Data Has Been Weak

Stocks Fall Sharply On Monday There was a steep decline on Monday, which pushed the S&P 500 towards the lower end of the range it has been in for the past few weeks. The S&P 500 was down 1.42% and the Nasdaq was down 1.84% because Facebook’s 6.8% decline dragged it down. Even though the market doesn’t…

Facebook Stock Gets Knocked Down By Cambridge Analytica Story

International Markets Drive Revenue Growth It’s not a surprise the small caps, which are mostly domestically focused, have lagged the S&P 500 in terms of margin expansion and revenue growth because the domestically focused firms in the S&P 500 have had slower growth than international firms for the past few quarters of this expansion. This…