Tag Archives: Stock Market

Market Liquidity Conditions Still Loose As A Goose

Since the Fed began raising interest rates in December 2015,  financial market liquidity conditions have loosened considerably.   Recall our post,  Orwellian Monetary Policy,  which we wrote in May. “Tightening is Easing” Since U.S. monetary policy began tightening in December … Continue reading

Posted in Algos, Monetary Policy, Uncategorized | Tagged , , | 17 Comments

Beware Shorting Impeachments

We’ve analyzed the behavior of the S&P500 during the Watergate impeachment hearings and the Clinton impeachment.  If you’re shorting risk markets solely based on speculation that President Trump may be impeached, maybe you should think again. Let’s first look at … Continue reading

Posted in Politics, President Trump, Uncategorized | Tagged , , | 6 Comments

Reagan v Trump Macro Initial Conditions

We hear lots of talk these days about,  Why Donald Trump’s Market Rally Echoes Ronald Reagan’s.    We are big fans of Chaos Theory, Chaos theory is a branch of mathematics focused on the behavior of dynamical systems that are … Continue reading

Posted in Equities, President Trump, Uncategorized | Tagged , , | 9 Comments

Are market bears just cuddly pandas – FT

James Mackintosh on rally after China dip The retreat in equities may have been triggered by China but markets moved so rapidly because investors were overly complacent. James Mackintosh, investment editor, questions the forces pushing for a deeper drop and … Continue reading

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China market intervention fails to impress – FT

China’s share market rallied on Friday, buoyed by the news of massive support to the tune of $210bn from the country’s banks. Michael Mackenzie, markets editor, says China may face a rather long wait until becoming a heavy hitter in … Continue reading

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What next for China’s equities? – FT

After a volatile week for Chinese equities, with half of all listed companies suspended, huge support from Beijing has helped the market record its best two-day gain in seven years. FT markets editor Michael Mackenzie assesses what might happen next. … Continue reading

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Bailing out of China | Short View – FT

Despite attempts by China’s authorities to bolster the country’s stock markets, the selling persists. James Mackintosh, FT investment editor, examines the bursting bubble, the chance for a reprieve and how the liquidity problem has worsened. ► FT Markets: http://bit.ly/1J5HNd3 (click … Continue reading

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The Fed Melt Up – FT

Keep Calm and Stay Long!  Yikes! The FT’s US markets editor Michael Mackenzie tells John Authers that the positive response from the market following the appearance before Congress of Janet Yellen, the nominee for US Federal Reserve chairwoman, has successfully … Continue reading

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The Character of This Market

Past is prologue.   They come in, shake the trees, and pick up the fruits. That’s the character of this market.   It’s in an uptrend and wants to go higher and will do so until it doesn’t and probably not until … Continue reading

Posted in Equities | Tagged | 1 Comment

Stocks Better Than Alternatives – Economist

The Economist sums the melt up best: It is tempting to attribute the strength of the Dow to optimism about the American economy. Tempting, but wrong. Studies have shown almost no correlation between GDP growth and equity returns. Indeed, the … Continue reading

Posted in Economics, Equities | Tagged , , , | 1 Comment