This week’s slaughter occurred more than a month after the virus really gained attention. Initially, the market traded like the virus would be contained to China but that is not the case anymore. In eight trading days, the S&P has fallen 12.76% from all-time highs. Markets have been rattled by…

Markets were undeterred this week and closed again at new all-time highs. All of the 11 S&P sectors closed higher, real estate +4.8%, led, followed by discretionary +2.6%, utilities +2.4%, and tech +2.3%. Energy underperformed despite a bounce in crude oil. It’s fair to say that the coronavirus remains a…

Equity markets gained back all of last week’s losses then made new all-time highs, again. Investors looked past the Coronavirus threat even as the number of infected continues to grow. The virus now has infected more people, 37k, than the 2003 SARS outbreak. US payroll data showed the economy created 225k jobs…

The short term trend turned decidedly negative this week as the equity markets had to start digesting the expanding coronavirus. Friday saw the heaviest volume of the year, with the Dow falling 2.1%.  The S&P currently sits 3.12% off the highs of Jan 17th. Helping the negativity was a flat 4th…

When the market opens Monday the main focus will be on the Coronavirus that appears to be gaining strength. Since we’re facing impending doom I thought we could look back on what happened last time a pandemic was coming down the tracks.  Where the next levels are from here if…

New Highs Again This Thanksgiving Week The only thing that wasn’t on sale this Black Friday was the stock market. The S&P closed just slightly off the All-Time High set on Wednesday before the holiday. The forward P/E on the SPX is currently 17.8. Gains were solid across the board with…

    Fixed Income FOMC October Statement      Federal Reserve Dot Plots     US Debt Measurement    US Corporate Debt Tops $6 Trillion   Treasury.gov yields FOMC Policy Normalization Statement   Global Bond Yields Daily US Treasury Yields  Foreign Exchange Market   Energy Complex The Baker Hughes rig count lost 5 this week. There are 817 oil…

    Fixed Income FOMC September Statement     Federal Reserve Dot Plots     US Debt Measurement    US Corporate Debt Tops $6 Trillion   Treasury.gov yields FOMC Policy Normalization Statement   Global Bond Yields Look at those year/y changes in yield! Daily US Treasury Yields  Foreign Exchange Market   Energy Complex The Baker Hughes rig count lost…

The only thing positive about this week is that it could have been worse. Volatility picked up and at one point, the S&P 500 had fallen 4% in less than three days. The VIX index jumped over 20% mid-week but ultimately a buy-the-dip mentality countered and the week closed only moderately lower. ISM Manufacturing for September fell to 47.8%…

The week started with oil futures jumping, 15%, the most ever overnight, as investors tried to understand the impact of a targeted attack on two Saudi refineries. Tuesday, overnight lending market rates (repo market) spiked, indicating lending stress. This caused the fed to inject $75 billion into the financial system, not once, not…