FED rate cut- Panic or Prosper?

Today the FED announced a long anticipated rate cut and the postponement of Quantitative Tightening.  It was a classic example of “buy the rumor, sell the news”.  The S&P500 dropped more than 1%, breaking below 3,000.  Should you panic?  I’m not.  I maintain the rationale that as long as the economy isn’t headed into aContinue reading “FED rate cut- Panic or Prosper?”

Markets like easy money

S&P500 is poised to close out the week up more than 4%.    Why? Mexican tariff fear is abating. No surprise, Mexico will take action (or at least say they will) to curb migrants entering their southern border. The May job’s report was weak, leading some to believe that the Federal Reserve will cut interest rates.Continue reading “Markets like easy money”

MARKET makes big bounce: bought IYT, XLE & XSD

The market bounced over 2% today in above average volume.  That’s a very good sign, especially since the past two trading sessions have been depressed by an onslaught of oppressive government policy uncertainty- Mexican tariffs & Big Tech anti-trust, to name a few. But the short sellers got caught by upbeat headlines- Mexico vows toContinue reading “MARKET makes big bounce: bought IYT, XLE & XSD”

Fear of recession greatly exaggerated

Multiple forms of uncertainty have converged to spook the stock market to its deepest correction in a decade.  A full bear market could occur with the next major support level at S&P500 2300. Where’s the bottom?  I have no idea.  What I do know is that at some point, there will be a bottom andContinue reading “Fear of recession greatly exaggerated”

2019 Market Upside Potential

Today the NASDAQ bounced nearly 3% because the Fed walked back their hardline stance on escalating interest rates.  My contrarian view has been that future rate hikes are limited, unless the Fed intentionally wants to crash the economy.  I don’t think they want to be responsible for creating a financial crisis, especially since Trump hasContinue reading “2019 Market Upside Potential”