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Treasury Yields To Continue To Drive Short-Term Trading

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Treasury Yields To Continue To Drive Short-Term Trading: Tom Essaye Quoted in Barron’s

Stocks Extend Rally After Best Week of the Year

“Today there are no notable economic reports and just one Fed speaker, [Lisa] Cook (11:00 a.m. ET), so look for Treasury yields to continue to drive short-term trading,” writes Sevens Report Research’s Tom Essaye.

The 10-year Treasury yield ticked higher on Monday but was still at 4.614%. The 10-year yield was trading around 5% in October, which weighed on rate-sensitive stocks.

“If the 10-year yield continues to decline then the S&P 500 can extend last week’s rally.”

Also, click here to view the full Barron’s article published on November 6th, 2023. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to Rally

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Tom Essaye Quoted in Blockworks on April 20th, 2023

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Bitcoin, Ether Hover Below Key Levels While Volatility Dips

“The VIX is trading at the lowest levels since the S&P 500 hit its standing all-time high in the early days of 2022,” Tom Essaye, founder of Sevens Report Research, said. “It will be hard to believe the market is poised to casually cruise towards new record highs from here,” he added. “I.e., the bottom of the bear market is not in.” Click here to read the full article.

Tom Essaye Quoted in Yahoo on March 14th, 2023

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How the Bank Failures Could Impact You Even If It Wasn’t Your Money

Sevens Report analyst Tom Essaye told Forbes the selloff following Silicon Valley Bank’s collapse and a similar collapse by crypto bank Silvergate last week was “undoubtedly an unwelcome reminder” of the 2008 financial crisis. And noted that SVB tried but failed to stay to afloat after the bank was forced to sell a bond portfolio at a $1.8 billion loss because higher interest rates pushed bond prices “far below” where they were when purchased. Click here to read the full article.

Tom Essaye Quoted in Blockworks on February 9th, 2023

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Analysts Warn Investors to Taper Expectations for 2023 Returns

Markets should be poised for a higher open, as they want to see claims begin to rise over the coming weeks, otherwise it’ll imply the labor market remains much, much too tight, Tom Essaye, founder of Sevens Report Research, said. Click here to read the full article.

Tom Essaye Quoted in Blockworks on September 2nd, 2022

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Higher-than-expected Jobs Report Not Enough To Push Stocks, Cryptos Green

The question for markets here is, at what point do investors begin to cheer the resilience of economic growth this year in the face of historically aggressive Fed policy tightening that is now beginning to show signs of being effective in capping and likely reducing inflation pressures? Tom Essaye, founder of Sevens Report Research, wrote in a note Friday. Click here to read the full article.

Tom Essaye Quoted in Barron’s on August 20th, 2022

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Bitcoin and Stocks Are Falling Together Again. What’s to Blame.

Bitcoin’s moves definitely follow the market. There’s no question, and that’s been especially true on days when the market has been down a lot, Tom Essaye, founder of Sevens Report Research, told Barron’s. Click here to read the full article.

 

What Could Send Stocks Higher from Here (Three Factors)

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What’s in Today’s Report:

  • What Could Send Stocks Higher from Here (Three Factors)

Futures are slightly higher as comments by San Francisco Fed President Daly are being interpreted as slightly dovish. San Francisco Fed President Daly spoke after the close Thursday and said that Wednesday’s CPI was a “welcome sign” that could lead to a “slowing” in the pace of rate hikes (to 50 bps in September, not 75 bps).

Economic data was better than expected as both UK and EU Industrial Production slightly beat estimates.

Today focus will be on the University of Michigan 5-Year Inflation Expectations (E: 2.9%) as that’s the first inflation reading in August, and if it drops below expectations we should see a continued tailwind on stocks.

Three Keys to a Bottom Updated (Not Good)

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What’s in Today’s Report:

  • Three Keys to a Bottom Updated (Not Good)
  • Weekly Market Preview: All About the Fed
  • Weekly Economic Cheat Sheet: Survey Data in Focus

Global stocks are trading sharply lower and bond yields rose to new multi-year highs overnight amid fears that the Fed is getting more aggressive into an economic slowdown.

In the wake of Friday’s hot CPI report, rate markets are now pricing in a 75 basis point hike by the Fed in the next three months which saw the 10s-2s spread invert overnight underscoring renewed and growing recession worries.

Looking into today’s session, there are no notable economic reports, and no Fed officials are scheduled to speak.

There are two Treasury Bill auctions at 11:30 a.m. ET (3-Month Bills and 6-Month Bills). And while they are typically lesser followed, the results could shed light on market expectations of Fed policy in the coming months and if we see rates continue to surge higher, especially those with shorter duration, then concerns about a more aggressive stance by the Fed will likely keep pressure on risk assets today.

Tom Essaye Quoted in Bloomberg Quint on February 24, 2022

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Bitcoin’s Digital Gold Luster Fades as Customary Havens Win Out

Bitcoin is much more of a momentum and risk-driven asset than it is the independent store of value that people want it to become, it’s not there yet…said Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter. Click here to read the full article.

Tom Essaye Quoted in The Coin Republic on June 17, 2021

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Investors bullish despite Bitcoins Volatility: Survey

The Sevens Report Research founder Tom Essaye said that Bitcoin needs to have more widespread legitimate adoption for… Click here to read the full article.