The Unloved Become Winners
Last year, the theme was mega cap technology at the expense of everything else. Since my “pound the table buy bottom” October 30th, we have had a complete reversal of fortunes. Small caps have led the indices. Cyclicals like banks, energy, industrials, transports and materials finally sprung to life. Bonds became as hated as they were loved. It’s really quite fascinating how the markets value things differently in different climates. Investors who get married to a particular theme or stock […]
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Date: March 15, 2021
Yields Popping Again – More Classic Dichotomy
Stocks look to open lower to end the week as the 10-Year Note yield is surging again. That will put pressure on growth and technology to the benefit of my favorite cyclical groups like banks, energy, industrials and materials. Since the NASDAQ 100 peaked on February 16, there has only been one single back to back days of gains. More than anything else, that tells you how every rally is being aggressively sold. However, look at small and mid cap […]
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Date: March 12, 2021
Fox Business TODAY, The 10-Year Boogeyman & Dow 33,000
I am excited to join my friend, Charles Payne, on Fox Business’ Making Money today at 2:45pm today (Thursday) discussing SPACs and the epic greed and euphoria in the financial markets. The other day, I joined my friend, Tim Lammers, on Fox61’s Morning News to discuss my recently published e-book. Tim is the consummate pro and I really enjoyed sharing tips and strategies that anyone can follow as they plan for retirement. In fact, I am going to do a […]
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Date: March 11, 2021
Markets Full of Emotion and Tepper Speaks Out
So much going on today after such an emotional reversal on Friday. Let’s start with last week. After a rout on Thursday and an ugly morning on Friday, the bulls came roaring back across the board to close stocks near their highs for the day. Interesting to note that the major indices rallied 3-5% from their intra-day lows to the close. That is certainly emotional. One day reversal patterns look awesome on a chart, but they do not have the […]
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Date: March 8, 2021
Classical Dichotomy
In 1994 which seems like a lifetime ago, I played Rotisserie Baseball. It was the predecessor to all these super popular fantasy sports. 12 of us met right before the season began and we drafted our own teams from MLB rosters. Changes to rosters were permitted weekly although for an extra fee, you could do this daily and use what was called a fax machine to send in activity. On Monday’s the statistics service would snail mail leagues standings and […]
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Date: March 4, 2021
Strange End to Feb – Buying Weakness Remains the Play
What a very strange close to February. With the stock market up on the month and Friday a decent day, there were massive computer generated sell programs in the final 15 minutes that knocked the S&P 500 down more than 1.5% before recovering a bit into the close. Interestingly, there was not a TICK spike, meaning that the programs were not widespread. They were limited to a handful of major stocks in the index. We do not know why or […]
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Date: March 1, 2021
“EVERYONE” Talking Bond Yields Now
Thursday was an ugly day. It was one of those “throw everything out with the garbage” kind of day. All indices and all sectors were red. The surge in 10-year yields was blamed. As you know, my forecast for 10-year yields in the first half of 2021 was in the range of 1.3-1.4%. Bond yields hit 1.6% intra-day yesterday as you can see below. The next “logical” levels are 1.65% and 2%. I do not believe we see 2% this […]
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Date: February 26, 2021
That’s It? Decline Over?
Tuesday was certainly one of those wildly volatile days, the kind we saw often last March and a few times in June and September. What was interesting about Tuesday was that significant intra-day losses were reversed so close to an all-time high. That doesn’t happen all that often and from memory, it was behavior seen often as the Dotcom Bubble was fully inflating and about to peak. The question now is, was that it? Is the pullback over? To exaggerate […]
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Date: February 24, 2021
A Change in Tune? Decline Unfolding?
It would be impossible for any of my readers to not know my theme of epic greed and euphoria in the financial markets since late last year. Yet, stocks keep forging ahead, almost unabated except for a very brief 4% pullback a few weeks ago. Make no mistake about it, a sentiment landscape like this is not going to end well. To be crystal clear, excessive risk taking is going to be severely punished. Please do not email me with […]
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Date: February 22, 2021
Another Opp For The Bulls
Stocks have pulled back so mildly over the past few days with the Russell 2000, S&P 400 and NASDAQ 100 leading the way. Yet, there is a short-term buying opportunity in the stock market as today is an expiration day. Those indices that fell that hardest are supposed to bounce the most and likely to new highs. The key will be if one or more do not. That would be an opportunity to further prune and move away from the […]
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Date: February 19, 2021
