Fed Doubles Down on Market Crash
LINK: Hey There Income Hunter, How about this for Fed BS … “Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery.” Obviously the consumer doesn’t agree with the Fed, since consumer expectations are much […]
Retail is Baaack!
Hey There Income Hunter, One area of focus during the back-half-of-March stock rally was the outperformance of high short interest stocks. Do you know what that means? Retail is back pushing the “pain trade,” which is buying the stocks that have the highest percentage of short interest to squeeze the markets higher – think GameStop […]
Stock Volatility Will Bottom this Week
Hey There Income Hunter, The massive short covering rally in the major stock indexes over the past few weeks took the VIX down dramatically in a short time period. After reaching 38 on March 8, the market’s “fear gauge” hit a low of 18.75 last Tuesday – and I think the VIX will […]
EV Stocks Get a HUGE Boost in US
Hey There Income Hunter, President Joe Biden continues to push the green energy revolution … and I’ll give him props for that. Now, under the Defense Production Act, he could invoke a Cold War-era defense law as soon as this week. This would help companies access government funding for feasibility studies for new projects that […]
Get Japan and You’ll Crush the Markets
Hey There Income Hunter, Japan and US policy could not be further apart right now. But if you understand what the Finance Ministry and Bank of Japan are doing, you will know what the future holds for the US. Since 1995 Japan has been basically giving yen away for free and it never boosted its […]
Yield Curve Inversion Signals Recession
[kc_row use_container=”yes” _id=”588216″][kc_column width=”12/12″ video_mute=”no” _id=”284570″][kc_column_text _id=”574929″] Hey There Income Hunter, The most talked about yield curve move in history finally happened this week … Chart via Bloomberg. Over the past 50 years, every time the US 2-year-to-10-year yield spread inverted (2-year yield above 10-year), the economy went into recession. I […]
Russian Gold-Ruble Peg Shocks US
Hey There Income Hunter, The Russian central bank announced it will pay a fixed price of 5,000 roubles for one gram of gold for at least the next three months. (That’s about $66.50 as of this writing.) Russia had gone on a buying spree in March to protect its savings as the ruble collapsed due […]
All Quiet on the Homefront … Not
[kc_row use_container=”yes” _id=”604951″][kc_column width=”12/12″ video_mute=”no” _id=”935768″][kc_column_text _id=”357232″] Hey There Income Hunter, The market continued to trade in a tight range on Monday as broad market index option positioning remained balanced. The tight range creates a “coiling” of energy, which awaits a catalyst to spark an explosion. The Cboe put/call ratio below is helpful in deciphering […]
Sell Stocks into Quarter End
Hey There Income Hunter, Keep an eye out this week … The vicious bear market rally since March 15 may take a pause as fund managers rebalance 60/40 portfolios. The S&P 500 is up nearly 10% in nine days and is sitting right on the Fibonacci .618 retracement of the move down from the all-time […]
US Blacking out on Green Energy
Hey There Income Hunter, The Federal Energy Regulatory Commission (FERC) is delaying requirements to consider climate change prior to approving natural gas projects. Two green energy guidelines that had been approved last month will now simply be called drafts so the US can move forward on a nat gas deal with Europe. […]