Bloomberg – Investors Are Ditching Tech Stocks at the Fastest Pace Since November 2007 On the surface, it was a quiet week for the product that tracks large-cap tech companies, ending down just 0.2 percent. On Thursday, however, QQQ suffered an intraday selloff of more than 2 percent led by Amazon.com Inc., with investors dumping the… Continue reading Tech Sector Shakeout
Bloomberg – No Bubble in Stocks But Look Out When Bonds Pop, Greenspan Says Equity bears hunting for excess in the stock market might be better off worrying about bond prices, Alan Greenspan says. That’s where the actual bubble is, and when it pops, it’ll be bad for everyone. “By any measure, real long-term interest… Continue reading Greenspan Chimes In On The Bond Bubble
The Financial Times – Trump tax reform plan heads into quagmire The Trump administration’s hopes of achieving tax reform this year are already being questioned by current and former congressional aides as Washington faces a fiscal quagmire over the next three months and intense wrangling over the details of changes. Donald Trump swore in John… Continue reading Tax Reform
The Financial Times – Brexit set to raise UK banks’ costs 4% and capital needs 30% Brexit will push up costs for banks by as much as 4 per cent and their capital requirements will rise up to 30 per cent, according to the most detailed assessment yet of what Britain’s departure from the EU… Continue reading Estimating The Cost Of Brexit
MoneyBeat (WSJ Blog) – Options Traders Aren’t Sweating the Debt Ceiling The bond market recently appeared jittery about a protracted fight on Capitol Hill over the debt ceiling. Options? Not so much. A reading of the options market shows investors expect little uptick in S&P 500 volatility in October, after extraordinary steps taken to pay the… Continue reading Viewing Debt Ceiling Concerns Through The Eyes Of The Options Market
The Financial Times – Earnings shenanigans underpin Wall Street record As the debate rages on whether earnings will justify current valuations, a critical point is lost: the accounting earnings which are used to construct the widely cited p/e multiples that each camp employs fail to tell the whole story. There are reasons to be sceptical… Continue reading Alternative Measures Of Earnings Growth
Bloomberg – Inflation Hits Low Bar Draghi Set as Stimulus Debate Gets Closer ECB to focus on strong growth ahead of taper talk in autumn Mario Draghi kept expectations low for inflation this summer, and July’s number is proving him right. Consumer-price growth in the euro area stayed at 1.3 percent — enough to argue that… Continue reading Eurozone Economic Data Changes at Extreme Relative to U.S.
Bloomberg – Oil Rises Over $50 as OPEC Set to Meet With Allies on Compliance OPEC, non-OPEC nations to gather in Abu Dhabi on August 7-8 Representatives of some OPEC and non-OPEC nations will meet in the United Arab Emirates capital on Aug. 7-8 to discuss why some of them aren’t fully implementing their cuts, according… Continue reading Oil ETF Investors Selling into the Rally
Below are links to our CoT Report. The first open button below links to our weekly analysis and the second open button below links to our interactive CoT charts. OPEN Commitments of Traders Update/Analysis OPEN Interactive CoT Charts page It allows users to change parameters, markets, dates and measures. Note that this report has six tabs… Continue reading Commitments of Traders Update/Analysis: The Canadian Dollar – The Biggest Short Squeeze Ever
View PDF The Wall Street Journal – U.S. Companies Post Profit Growth Not Seen in Six Years America’s largest companies are on pace to post two consecutive quarters of double-digit profit growth for the first time since 2011, helped by years of cost-cutting, a weaker dollar and stronger consumer spending. Earnings at S&P 500… Continue reading Earnings Season Hits The Halfway Point, And It Looks Good
The Financial Times – You are too complacent, central bankers warn markets The US Federal Reserve raised rates for the third time in six months in June, even though inflation had stayed below its 2 per cent target for much of the past decade. Why? The justification lies with the return to “economic normalisation” (a… Continue reading The Markets Are Not Missing The Message From Central Banks