Market Uncertainty
Market Uncertainty Market uncertainty is heating up. The Fed toying with the markets each day as investors hang on their ever word. The chance of a Fed Funds rate in June as elevated to 30% from near zero only a few weeks ago. There is a major election with big policy issues at stake which…
Opportunity in the Bonds
Opportunity in the Bonds It was only last week that I talked about scaling into a longer term short position in the bonds. I was only able to get partially in the position when Bonds broke hard today. Never look a gift horse in the mouth. I covered the short Bond position today and will…
Lower For Longer: Street Bets On Treasury Rally As Top Fed Official Warns On Policy
"I think markets may be extrapolating from our recent behavior and thinking all we do is delay.” That’s from Jeffrey Lacker and it’s entirely accurate. Lacker has been a vocal critic of the FOMC’s easy money policies for years and on Monday, The Washington Post published an exclusive interview with the Richmond Fed chief. Back…
Stock Market Correlations
Stock Market Correlations Stock market correlations are all wrong right now as the market continues to process the Fed announcement from yesterday. Bonds continue to march higher with all the commodities and the stock market. The weaker dollar is driving commodity prices higher. The Fed signaling a reduction in rate increases this year seems to…
Stock and Bond Market Correlation
Stock and Bond Market Correlation The stock and bond market correlation will dictate what happens next. If the bond market explode higher we can see a sell off in the stock market. However, if the bond market breaks down further you could see a bigger move higher in the stock market. Although I remain bearish…
Stock Sell Off
Stock Sell Off As predicted the selling the broader market resumed today with the Bond markets exploding to the upside. Fear is in the air but the volatility index is still not reacting to what has amounted to heavy selling across all sectors and the financials seeing a nearly 3% decline.