Market Commentary

The Election and the FED

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etf vs etn

The election this week produced a small rally in stocks and the odds are favorable that the rally may well continue into the end of the year and into next. When 18 of the last 18 midterm elections produced a rally within a year, and the average return being 17% it is hard to ignore […]

Market Commentary

Volatility

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retail sales calendar

Movement of stocks exceeding 200 points per day on the DOW has become common place starting in October. What this means is that investors should not get excited if the stock market moves up or down when it moves 300 to 400 points in a day. Volatility is part of the market and it should […]

Market Commentary

Earnings Season

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earnings report

With over 70% of the S&P500 companies reporting their third quarter earnings in October the market appears to unimpressed. In fact, more than the normal amount of those 70% that reported have beaten their estimates, and still the market does not care. For those companies beating their estimate they are down more than one percent […]

Market Commentary

Housing Starts

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housing market

The housing industry has been weakening for several months and the new housing starts report confirmed the trend, falling 5.3% in September according to the Commerce Department. Permits were at 1.241 million which is lower than the month before by .6%. Permits are also lower by 1% from a year ago. Permits are a leading […]

Market Commentary

The Correction

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The market has fallen in October; something that was expected, not only was it expected but most investors should welcome the weakness. Corrections are normal and health restoring to a sustainable Bull market. When stocks only go up, and keep trying to reach the sky, there has been a collapse that followed and it can […]

Market Commentary

What are Corrections?

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earnings report

There are two major phases in the movement of stock prices. We call them Bull and Bear markets. In either a long term general trend up or down is established. The phases are generally defined as movements of 20% or higher. These can last for years and sometimes, though rare, decades. The longest Bear market […]

Market Commentary

Jobs

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The September jobs report does not look impressive with less than expected new jobs coming in at 134,000. However, the impressive number was the 3.7% unemployment rate which has not been seen since 1969. Maybe the low number of jobs can be blamed on Hurricane Florence but we will have to wait for next month’s […]