Feb 12, 2018

Massive Volatility Is Indicative Of A Trend Change

We're continuing massive volatility which is I said to me is indicative of a change of trend because we were so long in an uptrend with no volatility now all of a sudden you have this massive volatility.

Related trading instruments: 

  • Select Sector Financial Select Sector SPDR ETF (XLF)
  • SPDR S&P 500 Index ETF (SPY)
  • iShares Russell 2000 Index ETF (IWM)
  • Nasdaq 100 Index ETF (QQQ)

Feb 9, 2018

Markets: Nothing Is Going To Stop Rates From Rising

Bond yields rose anyway even a 1,000 points down in the Dow Jones Industrials average wasn't even enough to send treasury yields lower with the yield on the 10-year and the 30-year rising to new highs for the move.

We had a horrible 30-year bond auction again. Why anybody showed up is beyond me but obviously not as many people showed up as they thought.  The big drop in the Dow Jones Industrials didn't make interest rates go down it just kept them from going up even more but nothing is going to stop rates from rising.

Feb 8, 2018

Stock Market: Volatility Signals a Trend Change

When you have a trend and then all of a sudden you see lots of volatility generally that's a sign that the trend is changing and the trend has been up obviously stocks have been trending up for years and they've been trending up with minimal volatility. When all of a sudden you see massive volatility does that mean the trend is likely to continue? No! It's more likely a sign that the trend has come to an end. (SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ), SPDR S&P 500 Index ETF (SPY))

This Just Shows How Quickly The Market Can Go Down

If you look at the five days from the high, in five trading days the Dow Jones futures lost about 13 percent of their value. In five days! Now that just shows you how quickly the market can go down, I mean, the next time it could lose even more even faster. (SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA))

Feb 6, 2018

Markets: The Problem With The Debt

Today if we have trillion dollar deficits not only is the Federal Reserve not monetizing any of it but the Federal Reserve is actually contributing to the problem by not rolling over the bonds that it holds as claiming it's going to shrink its balance sheet. Which means on top of the trillion dollars that the Treasury would need to sell to finance its deficits it's gonna have to sell extra Treasuries to repay the Fed what it's not rolling over. So this is impossible, this is a tidal wave of debt that's coming out of the market.

Related trading instruments: 10-Year U.S. Treasuries, iShares Barclays 20+ Year Treasury Bond ETF (TLT)

Stock Market: It's a Major Decline

We didn't have a black Monday like 1987 as it wasn't a 20 percent decline but it was the biggest point decline in the history of the stock market by a large magnitude. We were down 1,175 points and we were down 1,600 points at the intraday low. So this is the biggest point decline ever but in percentage terms it is in the top 20 (I think it was like number 14 or something) but it is a major decline and we rarely see declines this big. (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ))

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