Stocks surged yesterday on optimism that consumer confidence will boost the economy. Oil also advanced on a possible coordinated production cut from OPEC and Russia. As all know, oil and stocks plunged Monday on the inverse reasons of yesterday’s advance....
Today is the commencement of the 2 day FOMC meeting. No change in monetary policy is expected. I am certain the central bank will know the fourth quarter growth rate. Analysts are expecting a 0.8% increase for the period, the slowest pace since the 0.6%...
When will the selling stop??!! At one time the S & P 500 was at February 2014 levels. The number of annual new lows for both the S & P 500 and NASDAQ is at the greatest number since November 21, 2008 according to Bloomberg....
It was a volatile day as the S & P 500 rose as much as 1.1% and falling 0.8% closing essentially unchanged. Volume was about 30% above the 30 day moving average. The accepted reason for the volatility was the volatility in commodities, specifically oil....
What words can I use to describe Friday? Cathartic? Decimation? Ugly? Frightening? Capitulation?...
Warren Buffet once commented “You should not be in the stock market unless you can watch your stock holding decline by 50% without becoming panic stricken.” Mr. Buffet also commented his average holding period for a stock is “forever.” Ok, in reality it is 19...
It is getting really ugly. Equities opened higher again only to decline. Yesterday the Dow fell about 2.2% while the momentum driven NASDAQ was off over 3.4%. For the year, the Dow is now off about 7.3% and NASDAQ down over 9.6%....
Is the Federal Reserve becoming concerned about margin debt, especially relating to HFTs? Last week I referenced a report stating for the first time in December the Fed questioned its 21 primary dealers whether or not they extend credit to HFTs. Approximately two thirds answered...
What will happen today? China suspended its circuit breaker. Reuters reported China is also considering allowing the yuan to quickly fall as much as 10%-15% at the same time backing tighter capital controls. The decimation in oil is continuing and equity markets are roiled. AND...
In about a month stop loss and GTC limit orders will no longer be considered good orders for the typical investor. The reason—to reduce the odds of “stopping out” during volatile conditions. However this rule change does not apply to high frequency trading (HFT)....