• 13 hours Can Toyota's Hydrogen Car Take On Tesla?
  • 2 days Why Universal Basic Income Won't Work
  • 2 days Is This The Real Golden State?
  • 3 days Blockchain Firm Pushes For Ethical Mining
  • 3 days America’s Working Class Are Footing All The Bills
  • 3 days Market Volatility Sends Investors Scrambling Into This Asset Class
  • 4 days How Much Energy Would It Take To Power The Death Star?
  • 4 days A Tweet About Hong Kong Could Cost The NBA $4 Billion
  • 4 days World's Largest Miner Doubles Down On Renewables
  • 5 days Nasdaq Cracks Down On Small Chinese IPOs
  • 5 days Is There Any Reason To Be Bullish About Netflix?
  • 5 days Precious Metals See Record Inflows As Investors Hedge Against Teetering Economy
  • 6 days NYU Professor: Tesla Could Lose 80% Of Its Value
  • 6 days Uber To Offer On Demand Employment
  • 6 days SoftBank Reeling After Questionable WeWork Investment
  • 7 days Opportunity Arises In The Democratic Republic Of Congo
  • 8 days Peter Thiel’s Promised Land For Intellectual Troublemakers
  • 9 days Why Gold Stocks Are Drifting Lower
  • 9 days Copper Miners Feel The Squeeze As Prices Slip Once Again
  • 10 days Uncovering The Universe’s Biggest Secrets
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  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