Archive | Market Commentary RSS feed for this section

March 22, 2017

Stocks fell sharply yesterday.  The S&P 500 fell by more than 1% for the first time in 109 days. That is the longest streak without a 1% decline since 1993.  If you listen to the logic of my 2-day rule, the market has to fall again today in a meaningful way to establish a short […]

Read full story Comments { 0 }

March 20, 2017

Stocks meandered within a narrow range last week.  Strength in technology issues was offset by weakness in energy and, to a lesser extent, healthcare.  The Fed raised interest rates a quarter of a percentage point as expected, but it also gave a more cautious outlook than some had expected.  As a result, long term interest […]

Read full story Comments { 0 }

March 17, 2017

The averages fell slightly as the Dow Industrials dropped for the third day in a row.  The dominant news story yesterday was the introduction of the Trump budget. To start, understand that Presidential budgets are not meant to be taken at face value.  They are a government mandated attempt to set an agenda.  Congress controls […]

Read full story Comments { 0 }

March 15, 2017

Stocks fell yesterday, a day ahead of the important FOMC’s meeting conclusion and following the CBO’s review of the House Republican proposal to replace Obamacare.  While the total program cost under the House proposal would be less than currently, as many as 24 million fewer Americans would be covered.  The odds still favor the Republicans […]

Read full story Comments { 0 }

March 13, 2017

Stocks fell last week for the first time in seven weeks.  Most of the hope and hype has now been priced in.  It’s time for reality. This week will see two doses of reality.  The big headline story will most likely be the expected 25 basis point increase in short term interest rates from the […]

Read full story Comments { 0 }

March 10, 2017

Stocks recouped losses yesterday as traders awaited today’s employment report which should be the clinching factor for a FOMC 25 basis point rise in short-term rates next week. If you look at the market recently, it has given some hints of weakness.  The ratio of new highs to new lows has fallen, as has market […]

Read full story Comments { 0 }

March 8, 2017

  Stocks declined modestly yesterday after House Republicans released their version of a bill to repeal Obamacare.  President Trump chimed in (sorry, I meant Tweeted) that drug prices were too high and had to come down.  Drug pricing wasn’t addressed in the House version of the bill for reasons I will delineate below. We now […]

Read full story Comments { 0 }

March 6, 2017

Despite all the political nonsense coming out of Washington, markets had another good week with leading averages gaining about 1%.  All of the gains and then some happened on Wednesday after Mr. Trump gave a well-received speech to Congress outlining his economic and political agenda. Just as we have Dr. Jekyll and Mr. Hyde, it […]

Read full story Comments { 0 }

March 3, 2017

Stocks fell yesterday erasing a small portion of Wednesday’s robust gains after Trump’s speech to Congress Tuesday evening.  Last week saw a surge of individual buying as evidenced by a rush into mutual funds.  This comes while institutions continue to keep portfolios net balanced, an indication that they remain skeptical of valuations at the current […]

Read full story Comments { 0 }

March 1, 2017

Stocks ended a 12-session winning streak as investors backed away ahead of last night’s Trump speech.  But the speech came across well and futures have rebounded again this morning. Most commentary about the speech this morning deals with tone.  Trump sounded more Presidential than at any time since he came into office.  Obviously, a lot […]

Read full story Comments { 0 }