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Showing posts from January, 2014

January 25, 2014 – Weekend Market Comment

January 25, 2014 – Well you know what I say, speculators are like cockroaches, turn the lights on and they all scramble. So on Thursday we got another whiff of just how unstable banking is in China, which is not news but Master of the Universe George Soros has been spreading interviews predicting catastrophe in China a house of cards built of borrowed money.
Soros’s concern, expressed in a column for ProjectSyndicate, is that the Communist Party’s renewed focus on economic growth is at odds with its commitment to structural reform. He also likens China’s financial condition to those in the US before the financial crisis.
Then at the World Economic Forum in Davos, Switzerland -- Blackrock CEO Laurence Fink warned there is “way too much optimism” in financial markets as he predicted repeats of the market turmoil that roiled investors this week. “The experience of the marketplace this past week is going to be indicative of this entire year -- we’re going to be in a world of much greater…

January 18, 2014 – Weekend Market Comment

January 18, 2014 – The Standard & Poor’s 500 Index fell for the week, after touching an all-time high, as weaker-than-estimated earnings at companies from Citigroup Inc. to CSX Corp. offset an improving outlook for the global economy.
The S&P 500 (SPX) declined 0.2 percent to 1,838.70 for the five-day period. The Dow Jones Industrial Average gained 21.51 points, or 0.1 percent, to 16,458.56 for the week. Twenty-eight companies in the S&P 500 including Goldman Sachs Group Inc. and Bank of America Corp. reported quarterly earnings during the week. Out of the 52 companies in the gauge that have posted fourth-quarter results so far, 62 percent have exceeded analysts’ profit estimates, and 63 percent have topped revenue projections, according to data compiled by Bloomberg. Equities also fell during the week amid concern over valuations. The S&P 500 trades at 15.6 times the estimated earnings of its members, near the highest level since 2009 and more than the five-year aver…

January 12, 2013 – Weekend Market Comment

January 12, 2013 – Not a lot has changed from last week. U.S. stock finished mixed on Friday, with Wall Street not certain how much credence to give a dismal December-payrolls report, given just how far a field it was from expectations as well as other economic reports that have signaled an improving labor market. The Labor Department reported that non-farm payrolls increased 74,000 for the month of December, which was well below expectations and the lowest reading in almost three years. While clearly a disappointment as far as the labor market is concerned, keep in mind that this number is subject to revision and represents just one month.

Other recent economic data have painted a picture of a U.S. economy that is steadily improving. Exports hit a record level in November, lowering the U.S. trade deficit; businesses have ordered more manufactured goods and auto sales reached a six-year high in 2013. Analysts now estimate that the U.S. economy expanded at a healthy annual rate of thr…

January 4 2014 – Weekend Market Comment

January 4 2014 - The Standard & Poor’s 500 Index (SPX) fell for the week as investors sold shares after the biggest annual gain in more than a decade, as an improving economy heightened concern about the Federal Reserve's schedule for ending stimulus. The S&P 500 declined 0.5 percent to 1,831.37 in the holiday-shortened week, after completing 2013 with a 30 percent gain, the most since 1997. The Dow (INDU) Jones Industrial Average lost 8.42 points, or 0.1 percent, to 16,469.99 for the week. The U.S. market was closed Jan. 1 for the New Year’s holiday. The S&P 500, which finished last year at an all-time high, sank the most in three weeks on Jan. 2, snapping a streak of rallies on the first session of the year since 2009. The Dow average climbed 27 percent in 2013 for its best performance since 1995.

The S&P 500 remains in a strong uptrend and is now nearing the upper trend line of a twenty-six month channel. First and foremost, there is no sign of a major top on t…