We are currently in a defensive mode, and it has protected our client’s assets from a significant correction. We don’t see this changing unless the market shows some significant improvement and starts to trend up. We could also get a buy signal if we get a capitulation sell off. Our high to low draw down…
Read BlogWith the poor Employment report last week, we believe the Fed has lost the opportunity to raise rates at least in October. China was one of the factors the Fed considered in September to not raise, and China seems worse since then. The market did test the lows of August successfully last week, and what…
Read BlogThere is a foreign commodity based company called Glencore, their stock has plunged as low metal prices could force the company into bankruptcy. Glencore has $31 billion in debt. This is not conducive to a strong economy. Please click below to continue reading: Market in a Minute 2015-9-29
Read BlogThe Federal Reserve surprised us by not raising interest rates last week. Fed policy mandates it to be driven by employment and inflation. The Unemployment rate at 5.1% is very close to full employment, and inflation, excluding food and energy, has been running at 1.8%. The Fed cited concern about international economies for maintaining the…
Read BlogThe Federal Reserve meets on Wednesday and Thursday and will decide on whether to raise interest rates. The Fed-funds futures indicate a small chance of an increase, and half of all economists surveyed by Bloomberg believe they will raise rates. The Fed has two goals; full employment and containing inflation or for now protecting against…
Read BlogDuring August, the S&P 500 fell -6.4% and the PVG Loss Averse Equity Income Strategy was up .19%. The high in the market on July 20th to the low on August 25 was a decline of about -12.3% and over the same time period our strategy declined -2.4%, which is about 19.5% of the decline….
Read BlogBelow is a graph of the S&P 500, the 200 day-ma is currently at 2072, the 50 day-ma at 2054, the 20 day-ma at 1999 and the current price is roughly 1965, which is nicely off the low of 1860. The big picture on the technicals of the market, as we see it, is the…
Read BlogThe S&P 500 fell about 12% from its recent and all-time high, and bottomed out last week. The market subsequently rallied off the bottom to be down only around 6% last Friday. The S&P 500 has had a text book 50% retracement off the bottom. We are exactly in no man’s land. Our technical model…
Read BlogThe S&P 500 is off around 11.3% from its recent high in May and actually all-time high. The last several days have been brutal, as the market declined -12.6% from the very high to the intraday low on Monday. It is rather hard to believe some of these prints on Monday morning. The SPY traded…
Read BlogLast week, China devalued the Yuan by 3%, and the U.S. stock market responded poorly but then bounced back. We believe that is just the start. Exports from China declined by -8% in July. Keep in mind the vast majority of China’s economy is from exports. An -8% decline has got to have really shaken…
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