• 97 days Could Crypto Overtake Traditional Investment?
  • 102 days Americans Still Quitting Jobs At Record Pace
  • 104 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 107 days Is The Dollar Too Strong?
  • 107 days Big Tech Disappoints Investors on Earnings Calls
  • 108 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 110 days China Is Quietly Trying To Distance Itself From Russia
  • 110 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 114 days Crypto Investors Won Big In 2021
  • 114 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 115 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 117 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 118 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 121 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 122 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 122 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 124 days Are NFTs About To Take Over Gaming?
  • 125 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 128 days What’s Causing Inflation In The United States?
  • 129 days Intel Joins Russian Exodus as Chip Shortage Digs In
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Are The Bullish Breakouts Holding?

Yellen Shifts Gears

The Federal Reserve hopes market participants have come to accept a rate hike is on the way, allowing the central bank to avoid another taper-tantrum type event. From The Wall Street Journal:

According to Janet Yellen, If the economy continues to strengthen as the Fed anticipates and officials become more confident that low inflation will rise toward their 2% goal the central bank "will at some point begin considering an increase in the target range for the federal funds rate." With that assessment, Ms. Yellen took an incremental step, shifting the central bank away from promises that interest rates will stay low and toward a discussion of when and how fast they will move up.

So Far, So Good

Last week, the broad NYSE Composite Stocks Index finally posted a new high after failing to do so for over six months. In the wake of Yellen's "a rate hike could be coming" remarks, the market is holding last week's gains (see chart below).

$NY NYSE Composite Index INDX

This week's stock market video covers the NYSE new high in more detail along with numerous other bullish developments.

Investment Implications - The Weight Of The Evidence

Since noting there was a fine line between patience and risk management on January 15, the S&P 500 has gained over 120 points. The weight of the evidence, as tracked by our market model, has shown incremental improvement in recent weeks, allowing us to remain patient with stock-related positions. The bearish case will regain some traction if the S&P 500 closes below 2090 this week. As always, the market will guide us if we are willing to listen with a flexible and open mind.


Back to homepage

Leave a comment

Leave a comment