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11/19/18 – CNBC: This chart is proof ‘buy the dip’ is dead

One of Wall Street’s most famous proverbs of this bull market is backfiring. “Buy the dip,” or picking up a stock or the whole market when they sell off, isn’t working for the first time in 16 years, according to analysis from Morgan Stanley. The investment bank looked at the average return for the S&P 500 if the previous week was negative and found that this year, there was no rebound. Read More.

11/19/18 – Tyler Durden: Why Bank Of America Expects Stocks To Hit “Big Lows” In The Next Few Months

Late in January, just as the market was enjoying an unprecedented melt-up ahead of the February VIXplosion which sent the S&P on its first of two corrections in 2018, Bank of America published a warning report, titled “Our Sell Signal Was Triggered On Jan 30, S&P 2686 Is Next” in which chief investment strategist Michael Hartnett explained why he was convinced that a drop as much as 12% was imminent in the coming weeks. He was spot on, with the S&P tumbling within days, hitting hit target and then some. Read More.

Market Update – Friday 11/09/18 4:00 PM EST

The SkyNet SellBots took control of the overnight futures, sending stocks sharply lower at the open of trading in New York. The selling pressure continued until precisely 2:15 PM (funny how that works) when the BuyBots stepped in and cut the days’ losses by about one-third into the close. The DJIA dropped 201 points (0.8%) but the NASDAQ plunged 123 points (1.7%).

Stay tuned as the battle of the SkyNet StockBots continues!

11/17/18 – Lance Roberts: Bear Market Growl Grows Louder

Several months ago, I penned an article about the problems with “passive indexing” and specifically the problem of the “algorithms” that are driving roughly 80% of the trading in the markets. To wit:

“When the ‘robot trading algorithms’ begin to reverse (selling rallies rather than buying dips), it will not be a slow and methodical process, but rather a stampede with little regard to price, valuation, or fundamental measures as the exit will become very narrow.” Read More.

11/16/18 – -Lance Roberts: Why This Isn’t “THE” Bear Market…Yet

After two significant corrections during 2018, this has to be the beginning of a “bear market,” right?

It certainly is possible given the headwinds that are starting to weigh on corporate outlooks such as ongoing trade wars, weaker revenue growth, a strong dollar, and higher interest rates. However, despite these concerns, there are three things which suggest the necessary psychological change for a more meaningful “mean reverting” event has yet to occur. Read More.

11/14/18: Stock-Market Supercomputer to Launch With Glitches

WASHINGTON—A data warehouse created to track all U.S. stock and options orders is expected to launch on Thursday with less functionality than previously anticipated including limits on how many users can search it, according to people familiar with the matter.

The Securities and Exchange Commission ordered the creation of the Consolidated Audit Trail in 2012 after regulators found they didn’t have enough information to explain a sudden market decline, known as the “flash crash,” that occurred in May 2010. One SEC commissioner, Kara Stein, has said the database could become the “Hubble telescope of securities markets.” Read More.

Market Update – Wednesday 11/07/18 4:00 PM EST

Apparently ignited by the overnight election results, the SkyNet BuyBots took control and launched a fierce rally right through to the close. The DJIA soared 545 points (2.1%) and the NASDAQ jumped 195 points (2.6%).

Stay tuned as the battle of the SkyNet StockBots continues!

11/14/18 – Peter Schiff: Investors Oblivious as Multiple Bubbles Pop

Very Negative Technical Action

We had another roller coaster ride in the stock market today, with the Dow Jones ending down about 200 points, but that was well off the lows of the day. I think we were down about 350 points, or close to it, at the lows. But, more interesting, we were up over 200 points earlier this morning. So this is very negative technical action, when you have these rallies and then close negative. Read More.

11/14/18 – Brandon Smith: The Fed Will Continue Tightening Until Everything Breaks

Around three years ago, in September 2015, I wrote an article titled ‘The Real Reasons Why The Fed Will Hike Interest Rates‘ in which I predicted that the Federal Reserve, in the face of criticism, would soon pursue a program of interest rate hikes into economic weakness. I argued that this plan would be somewhat similar to what the Fed did in the early 1930’s; an action that prolonged the Great Depression for many more years. So far, my prediction has proven to be correct. Read More.

11/14/18 – Tyler Durden: A $30 Billion Computer Is About To Start Selling Stocks

One by one, human traders – having suffered devastating losses in the past 11 months – are giving up hope on stocks, now that BTFD no longer works. And, in a disturbing development, so are the robots.

A $30 billion computer, run by UBS’ wealth management which oversees $2.4 trillion in capital and entrusted by some of the world’s richest, is poised to underweight stocks as real money and systematic investors pare risk amid flagging bull-market momentum. According to Andreas Koester, head of global asset allocation at UBS Wealth, the quantitative-investing platform is close to trimming its equity holdings to 20% from a neutral 50%, a shift that would lead to an avalanche of selling as hundreds of billions in stocks are forced to find a new home. Read More.

Market Update – Tuesday 11/06/18 4:00 PM EST

The rally continued as the SkyNet BuyBots took control of the overnight futures and kept right on going through to the close. The DJIA gained 173 points (0.7%) and the NASDAQ added 47 points (0.6%).

Stay tuned as the battle of the SkyNet StockBots continues!

11/14/18 – Tyler Durden: A $30 Billion Computer Is About To Start Selling Stocks

One by one, human traders – having suffered devastating losses in the past 11 months – are giving up hope on stocks, now that BTFD no longer works. And, in a disturbing development, so are the robots.

A $30 billion computer, run by UBS’ wealth management which oversees $2.4 trillion in capital and entrusted by some of the world’s richest, is poised to underweight stocks as real money and systematic investors pare risk amid flagging bull-market momentum. According to Andreas Koester, head of global asset allocation at UBS Wealth, the quantitative-investing platform is close to trimming its equity holdings to 20% from a neutral 50%, a shift that would lead to an avalanche of selling as hundreds of billions in stocks are forced to find a new home. Read More.

11/13/18 – Lance Roberts: Technically Speaking: Major Markets Are All Flashing Warning Signs

In this past weekend’s newsletter, I touched on the outcome of the mid-term elections and why it would likely not be as optimistic as the mainstream media was portraying it to be. To wit:

“It is likely little will get done as the desire to engage in conflict and positioning between parties will obliterate any chance for potential bipartisan agenda items such as infrastructure spending. Read More.

11/13/18 – Jesse Colombo: These Are The Headlines You See In A Bubble

The world had gone completely startup crazy over the last several years. Spurred by soaring tech stock prices (a byproduct of the U.S. stock market bubble) and the frothy Fed-driven economic environment, countless entrepreneurs and VCs are looking to start the next Facebook or Google. Following in the footsteps of the dot-com companies in the late-1990s, startups that actually turn a profit are the rare exceptions. Unfortunately, today’s tech startup bubble is going to end just like the dot-com bubble did: scores of startups are going to fold and founders, VCs, and investors are going to lose their shirts. Read More.

Market Update – Monday 11/05/18 4:00 PM EST

US stocks turned in a mixed performance, as the SkyNet StockBots battled it out to a net positive close. The DJIA gained 190 points (0.7%) but the NASDAQ slipped 28 points (0.4%).

Stay tuned as the battle of the SkyNet StockBots continues!

11/11/18 – Charles Hugh Smith: Understanding the Global Recession of 2019

Isn’t it obvious that repeating the policies of 2009 won’t be enough to save the system from a long-delayed reset?

2019 is shaping up to be the year in which all the policies that worked in the past will no longer work. As we all know, the Global Financial Meltdown / recession of 2008-09 was halted by the coordinated policies of the major central banks, which lowered interest rates to near-zero, bought trillions of dollars of bonds and iffy assets such as mortgage-backed securities, and issued unlimited lines of credit to insolvent banks, i.e. unlimited liquidity. Read More.

11/12/18 – Lance Roberts: The Economic Consequences Of Debt

Not surprisingly, my recent article on “The Important Role Of Recessions” led to more than just a bit of debate on why “this time is different.” The running theme in the debate was that debt really isn’t an issue as long as our neighbors are willing to support continued fiscal largesse.

As I have pointed out previously, the U.S. is currently running a nearly $1 Trillion dollar deficit during an economic expansion. This is completely contrary to the Keynesian economic theory. Read More.

11/11/18 – Tyler Durden: Goldman ‘Bear Market Indicator’ Nears Record High: “No Limit To The Stupidity Of Wall Street”

“Get used to this kind of volatility,” warns Hussman Funds’ John Hussman in his latest comment.

“Unfortunately, the moment interest rates hit zero, [historical risk and valuation] limits vanished, and preemptively responding to speculative extremes became terrifically detrimental.”

“Presently, neither valuations nor internals are favorable, and that is what opens up a trap door under the market.” Read More.

 

Market Update – Friday 11/02/18 4:00 PM EDT

The SkyNet BuyBots took control of the overnight futures again, sending stocks sharply higher at the open of trading in New York. From there, the SellBots kicked in and sent stocks lower into the close. The DJIA dropped 110 points (0.4%) and the NASDAQ gave back 77 points (1.0%).

Stay tuned as the battle of the SkyNet StockBots continues!

Market Update – Thursday 11/01/18 4:00 PM EDT

The rally continued as the SkyNet BuyBots took control of the overnight futures and kept right on going through to the close. The DJIA gained another 265 points (1.0%) and the NASDAQ jumped another 128 points (1.7%).

Stay tuned as the battle of the SkyNet StockBots continues!

Market Update – Wednesday 10/31/18 4:00 PM EDT

Yesterday’s big rally continued as the SkyNet BuyBots took control of the overnight futures and kept right on going until the SellBots kicked in at exactly 3:00 PM (funny how that works)  taking back a good chunk of the early gains. The DJIA ended higher by 241 points (1.0%) and the NASDAQ jumped another 144 points (2.0%).

Stay tuned as the battle of the SkyNet StockBots continues!