This afternoon the Federal Reserve announced its latest policy, raising interest rates by 0.75% for the second consecutive month. Afterward, Fed Chair Jerome Powell answered a number of questions from the press gallery. First, Powell was asked whether he agrees with the White House that ‘we won’t be in a recession.’ He then replied… ‘We […]
For those wanting to jump in and ‘buy the dip’ be mindful of our constant warnings that ‘bear market rallies typically fail to make new highs, and instead often make new lows.’ According to Bank of America ‘The average peak to trough bear decline = 37.3%, average duration 289 days; history is no guide to […]
The S&P 500 dropped 123 points or 3.25% and is now close to testng the 50% Fibonacci retracement level from the rally from Mar’20 to Jan’22. Remember our warning all through this year… bear market rallies tend to be sucker rallies, usually failing to reach new highs, and instead make new lows. We are neutral […]
The S&P 500 dropped back into a bear market within the first 30 minutes of trading today. The index is now down over 20% from its January high, marking the lowest level since March 2021. The Dow plummeted 2.79% while the Nasdaq fell 4.8%. Recession fears are growing amid crippling inflation and people are pulling […]
US stocks sank Friday as investors digested two downbeat prints on the US economy. May data on inflation showed price increases unexpectedly accelerated last month, with consumer prices rising 8.6% year-over-year in May, the most since 1981. Consumer sentiment data released Friday morning came in at a record low, as inflation weighs on American households. The S&P […]
A major reason the equity markets had such a great run over the past decade has been thanks to the loose monetary policy of the Federal Reserve. And from August 2019, the Fed has increased its balance sheet 137%, from $3.76 trillion, to $8.92 trillion. That is more than all of the prior QE periods […]
Technology trends are constantly and quickly evolving, and part of that evolution is certain technologies catching up to, or leapfrogging others. Such may be the case with Cloud Computing, with large developments already in place, such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform. The technology continues to grow, and is dominant […]
In yesterday’s issue of Today’s Charts we warned that in bear markets there is a lot of volatility, with violent moves both up and down. Today we saw what a violent move down in stocks looks like. We also warned that most relief rallies in a bear market fail. It is another reminder to ensure you have […]
As noted in Sunday’s issue of the Trend Letter, after the big sell-off, we are now seeing a relief rally. This could last for days, weeks or even a couple of months, but be very careful because if we do not see higher-highs and higher-lows, then we are most likely to see the market turn […]
Stocks rebounded sharply in the final hour of trading, with the S&P 500 almost erasing a selloff that pushed it to the brink of a bear market earlier Thursday. The turnaround came as Federal Reserve Bank of San Francisco President Mary Daly told Bloomberg News that a 75-basis-point increase in rates is “not a primary consideration,” while […]