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HomeMay 6, 2010 Trading Was Crony Capitalism!!
Posted by Larry Doyle on May 7th, 2010 9:27 AM |
While the market is working to digest the better than expected Unemployment Report this morning, put the pom-poms away please. No, I am not negative on the report, I am calling bulls%*# on a crony capitalist system that allows for so-called market exchanges to develop and function as they did yesterday.
Fat finger (meaning a trade size was incorrectly entered)? I do not buy it. I think yesterday was nothing more than so-called liquidity providers engaging in high frequency trading, and taking investors to the hoop in a HUGE way. How so? (more…)
April 2010 Market Review
Posted by Larry Doyle on May 1st, 2010 9:30 AM |
Did spring, in the form of April’s market returns, just come in like a lamb? Will spring, in the form of 2nd quarter GDP, go out like a lion? Will that lion be robust and energized, or an angry beast?
April’s returns are now in the books. Many of the themes remain the same. Those include:
1. A trend toward disinflation helping the bond market primarily.
2. Easy money from the Fed supporting all markets.
3. Improved corporate earnings (be aware that earnings comparisons are year over year, and April 2009 was the economic abyss). (more…)
April 10, 2010: Month to Date Market Review
Posted by Larry Doyle on April 10th, 2010 8:30 AM |
I will spare you the fact that the drama playing out in Greece is likely to have a tragic ending. I will do the same in terms of housing and labor in our nation. Let’s focus on the positives which reside in the bubbling waters of a variety of market sectors. Are the bubbles intoxicating? You bet they are. Remember, though, do not drink and drive!!
Welcome to our Sense on Cents Week in Review where I provide a streamlined recap of the major economic data and news, along with month-to-date market returns. (more…)
Caution: The Market Looks Dangerously ‘Overbought’
Posted by Larry Doyle on April 6th, 2010 8:48 AM |
Is the equity market overbought? Am I supposed to be allocating capital to the equity market after this enormous runup? Is there value in the market, or is this simply one massive momentum trade? Why is overall equity volume so light? Is that an indicator that the market is operating on borrowed time?
All great questions. If I had the exact answers and told you so, I’d be a certifiable liar. These questions can only be addressed on a relative basis. On that note, one of the best measuring sticks that I’ve always used in assessing overall market strength and direction is known as Relative Strength Index, or RSI. What is that? (more…)
What if Nobody Shows to Wall Street’s Party?
Posted by Larry Doyle on March 5th, 2010 2:48 PM |
Did Wall Street forget to send out invitations to the party going on in the equity markets, or are people merely preoccupied with other affairs to truly care as to what is happening in lower Manhattan?
In any event, I referenced the other day during my appearance on CNBC’s Street Signs that the greatest risk for the financial industry is if people choose not to play the game. In fact, I very much believe that dynamic is playing out. Why? Look at today’s price action in the equity markets. (more…)
February 20, 2010: Market Week in Review
Posted by Larry Doyle on February 20th, 2010 7:54 AM |
Markets rebounded strongly this week. In the process, most of the major market equity averages, commodity indices, and bond ETFs recouped January’s declines and are now back close to their December 31, 2009 levels. What happened?
Welcome to our Sense on Cents Week in Review where I provide a streamlined recap of the major economic data and news, along with month-to-date market returns.
ECONOMIC DATA
A lot of news and data this week. Some good. Some not so good. Let’s dive right in. (more…)
January 2010 Market Review
Posted by Larry Doyle on January 30th, 2010 10:49 AM |
As January goes, so goes the year.
Does this adage hold water? The market direction for the year is correlated approximately 70% of the time with January’s move. I certainly would not make investment decisions based purely upon that rule of thumb. The rule did not hold in 2009 as major equity averages were down 8% last January. That said, 2009 was anything but a normal year given the massive economic and market supports implemented by Uncle Sam.
What rule of thumb would I recommend? Read and review Sense on Cents regularly to most effectively navigate the economic landscape. On that note, let’s review the market moves for January. The figures provided are month end statistics for the respective markets, then month-to-date and year-to-date returns. (more…)
January 23, 2010: Week in Review
Posted by Larry Doyle on January 23rd, 2010 7:15 AM |
From Massachusetts to Washington and from Wall Street to China, fireworks were flying this week across our global economic landscape. While the political focus in America is grabbing center stage, make no mistake, the issues driving the politics are largely economic.
Welcome to our Sense on Cents Week in Review where I provide a streamlined recap of the major economic news and the month-to-date market moves. Pack lightly as we have much ground to cover. That said, let’s enjoy the journey as the twists and turns along our landscape are truly fascinating and historic in nature. Let’s navigate.
ECONOMIC DATA:
1. Housing Starts: a disappointing report as starts fell 4% after an upward revision to a 10.7% increase in the prior month. I still take all the housing numbers with a pound of salt knowing that delinquencies and defaults continue to move higher. (more…)
January 9, 2010: Week in Review
Posted by Larry Doyle on January 9th, 2010 11:37 AM |
The economy continues to send very mixed signals. The market screams like a scolded dog. The more things change, the more they stay the same. Welcome to our weekly Sense on Cents Week in Review. I will provide a streamlined recap of the major economic news and the month-to-date market moves. Let’s navigate.
ECONOMIC DATA: (more…)
