The Monetary malpractice of the central banks, within the developed economies, has distorted the pricing of risk and therefore the process of price discovery. Let’s review the evidence MOUNTING DISTORTIONS The following chart illustrates how the Federal Reserve’s policy of Quantitative Easing (QE) has produced such a distorting market effect that stock prices no longer […]
Let me state at the outset, this is a completely false US stock market and risks have never been higher! However, this doesn’t mean it won’t go higher in the short term. As a matter of fact I expect higher highs in 2015, though the fundamentals won’t support this view. WHAT IS GOING ON? So […]
We suddenly have slowing global growth expectations & a flattening yield curve to support this new shift in market sentiment. The warnings have been there for some time but now bad news is seen as bad news and not simply the good news that this is sufficient reason for the central banks to pump more […]
The job of the Federal Reserve has historically been to ‘take the punch bowl” away when the party begins to get out of control. Today the job of the Fed has proven to be the supplier of the intoxicating “liquidity” libation which keeps the market party going! The bootlegger of liquidity. The Fed however has […]
The Stage Is Set For an Ever Bigger Crash Than 2008 Last week we touched upon the “white elephant” in the room: that the biggest, most important bubble investors should worry about is in bonds, NOT stocks. Consider the following… The financial system is based on debt. US Treasuries, the benchmark for an allegedly “risk […]
“I was bribed by billionaires, I was bribed by the Americans to report…not exactly the truth.” – Udo Ulfkotte, a former editor of one of Germany’s main daily publications, Frankfurter Allgemeine Zeitung Zerohedge Some readers will see this and immediately dismiss it as Russian propaganda since the interview appeared on RT. This would be a serious mistake. Whether you […]
Failing Fundamentals What is it that is troubling legendary investors such as George Soros, Stanley Drunkenmiller, Sam Zell, Carl Icahn and others to be so worried about the markets and to be issuing warnings as they exit? We need to pay attention to these people who each have unbeatable track record but ’en masse’ is […]
August Retail Sales: Post-Winter Bounce Fading Fast 09-12-14 ALHAMBRA PARTNERS The retail sales release for August was actually quite alarming. The track of sales pretty much confirms the end of the spring “bounce” that showed up in Gallup’s figures, but the real concern is that the “bounce” itself was never more than a minor adjustment; an absence of […]
Through the use of current market charts I will give examples of using technical analysis as the backbone for a trading or investment strategy. Your charts and the technicals used to set them up are an important part of the technical strategy. It is common to see an analysis where only one or two tools […]
S&P Exhaustion S&P Overextended The S&P is sitting a full 34% above its 200-weekly moving average. We have NEVER been this overextended above this line at any point in the last 20 years. Trading Volume US Trading Volumes Have Plummeted 50% Since 2008 FED Balance Sheet -v- S&P Price Has […]