The Market Rollercoaster Continues

The market rollercoaster continued Friday after markets initially gave back all of Thursday’s rally following the disappointing September jobs report, only to recover midday and squeeze higher into the close to finish solidly positive. So, what does Friday’s turnaround market rollercoaster mean for stocks? Friday’s turnaround happened for two reasons: First, the jobs report was[…]

September Jobs Report Preview

The importance of this month’s jobs report has been reduced following the September Fed statement, where the FOMC shockingly “moved the goal posts” and made equity market volatility and the international growth outlook primary factors that will decide whether rates increase later this year. That said, this jobs report is still important for multiple reasons,[…]

Headwinds Priced In, and Not Priced In

For the past several weeks, I’ve been telling subscribers to The 7:00’s Report about the headwinds facing the equity market. While some of those can be considered headwinds priced in, others are not priced in, and therefore represent future danger for investors. Here’s a quick rundown of the headwinds priced in, and not priced in.[…]

A Second Phase of Selling

Yesterday’s selling was uglier than it should have been given the news and fundamentals, and I am now getting concerned that this decline in stocks may be entering a second phase of selling where price action itself is the downside influence. Specifically, extreme weakness in the biotech stocks (and healthcare more generally) and the industrial[…]

Market Headwinds: Step Forward, Step Back

Two major market headwinds remain for equities: Lack of Fed clarity and concerns about Chinese growth. While there was some slight progress in both last week (which was incrementally positive), it was counteracted by renewed uncertainty in Washington following the news that House Speaker John Boehner had resigned. So, it was one step forward, one[…]

Is Market Valuation Cheap, Fair or Rich?

Now that rate liftoff is basically off the table until December, and with Chinese growth issues well known by the market, the issue of market valuation is emerging as the key unknown major influence that will influence stocks between now and year end. Having an idea of current market valuation (and the potential movements) is[…]