When global central banks began to expand their balance sheets in an attempt to ward off the Great Recession of 2008-2009, their efforts were considered unprecedented.
The market is off to another great start. For the past several years we have seen an aggressive move higher in the early part of the year and then a sharp pullback. What does 2013 have in store for us? Let’s discuss what is driving this latest move higher and what has derailed things in the past few years.
Last July the 10-Yr UST yield fell to an all-time low of 1.379%. Since that time yields have been steadily rising with the 10-Yr yield hitting 1.947%. The rise in interest rates has been greater than the rise in inflation rates...
The U.S. equity market continues to look very bullish right now, but it’s also starting to enter into a territory a technical analyst would call “extended” and “overbought”.
The market continues to march higher in 2013 as the short-term to long-term trends and momentum for the S&P 500 remain bullish. The slight deterioration in the daily readings for MACD BUY signals as well as 52-week high data that previously warned of a potential short term top appear to be resolving on continued strength.
Same pattern in the markets today. Slow start with a steady build throughout the day and a positive close. The S&P 500 tacked on another 0.44% today and the Dow rose by 0.46%.
Previous Corporate Hoarding of Cash May Soon Become a Big Positive
Corporate cash will offset Fed removing punch-bowl
For a number of years analysts have bemoaned the fact that U.S. corporations were hoarding cash, refusing to invest it for future growth. Lagging business investment has continuously been tagged as one of the major factors stifling the economy.
The market ended the week strongly as both the Dow and S&P 500 ended higher for the day finishing off another strong week in the markets. The NASDAQ was off as Intel was down over 6%.
Nothing can be more in-your-face to the secular bear market call as new all-time highs in a market. Whether we’re talking about equities, commodities, or bonds, when a security hits new all-time highs it should be the check and mate of a bearish call.
The rally since the start of the year has continued to improve the S&P 500’s long term, intermediate term, and short term trends as all firmly display bullish readings with more than 60% of S&P's 500 stocks having rising moving averages.
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