Ever since the June 17 bottom, the market has made up its own mind. It didn’t matter what the hawkish Fed officials said about their resolves to fight inflation, the market plowed ahead as if everything is fine. The S&P 500 met its maker at 200-day moving average on August 16, 2022. The bulls were […]
The market rallied mindlessly post the July Fed meeting, which didn’t sit well with the Fed. The Fed would like the equities to stay at lower valuation to diminish the wealth effect associated with a richly valued stock market. The stock market is one of the major parts of the broad financial condition which the […]
The market survived a few major challenges to its upward momentum last week. The market reacted positively to the Fed July meeting rate hike decision and all the mega tech earnings reports! This market reaction didn’t sit well with the Fed. On Sunday, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, told CBS’ […]
The 10-year treasury yield topped on June 14, 2022 at 3.483% and the commodities topped a week before that. This is not a random event that the 10-year treasury yield tops after the commodities for no reasons. It is precisely how the intermarket works. Commodities represent the cost of goods for society in general. Interest […]
The U.S. inflation reached 9.1% in June, its highest rate in nearly 41 years, but the market didn’t react negatively. The Q2 bank earnings was bad, the market as a whole didn’t react negatively either. When two consecutive negative news releases failed to move the market down, we call this divergence as one of the […]
In the beginning of last week, the talk of the town was recession. Oil tumbled 10% as the fear of recession was played out on media. But last Friday’s jobs data was stronger than expected growth. The strong jobs data dispelled the fear of recession a little bit, then the worrying of a 75-basis point […]
