Entries by Tom 2

A Falling Bond Playbook

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A Falling Bond Playbook Yesterday I talked about how both stocks and bonds could decline if we see a material pullback in the market. Given most of us are “long” both, that’s a little concerning, seeing as they historically tend to hedge each other.  Bonds are bouncing today, but I wanted to provide a bit […]

It’s All About Considerable Time

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Bottom Line—It’s About “Considerable Time” If there was one specific reason stocks have traded “heavy” for over a week now (Friday’s rally aside), it’s Fed expectations.  This market remains Fed-dominated, plain and simple.  And, levels of Fed angst are slowly on the rise as we near the Sept. 17 FOMC meeting. In particular, there is […]

Sevens Report Chart of the Day by Analyst Tyler Richey

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Crude oil futures are extending losses this morning after the EIA reported largely bearish inventory data. See results below. WTI Crude Oil: -1.0M barrels vs. (E) -1.2M barrels RBOB Gasoline: +2.4M barrels vs. (E) Unchanged Distillates: +4.1M barrels vs. (E) +600K barrels

Are Junk Bonds Forecasting a “Top” in the Stock Market Again?

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Even though the fundamental backdrop is favorable for stocks, the inevitability of a continued market rise is palpable. The “Pain Trade” is now clearly lower for both stocks and bonds. JNK, the junk bond ETF, accurately forecasted the July/early August decline in the stock market. Now, it’s rolling over again—providing a potential warning sign that […]

JNK Is Rolling Over – That Is a Warning Sign

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JNK Is Rolling Over—That is A Warning Sign JNK, the junk bond ETF, accurately forecast the July/early August decline in the stock market. Now, it’s rolling over again—providing a potential warning sign that we may be in for another dip. In the July 22 issue of the Report, we included a chart that showed how […]

2 Reasons We May Be In for Another Sell-Off

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2 Reasons We May Be In For Another Sell-Off Even though the fundamental backdrop is favorable for stocks, the inevitability of a continued market rise is palpable. The “Pain Trade” is now clearly lower for both stocks and bonds. There were three pieces of anecdotal evidence yesterday to support my opinion (although, obviously, anecdotal evidence […]