Chris Ciovacco
Articles by Chris Ciovacco
Good News Is Finally Good NewsEarlier this week, we covered the good news is bad news logic that dominated the markets Monday through Thursday. Friday, the markets shifted to a “good payroll numbers mean a strengthening economy, which...
Good News, Bad NewsMarkets can get somewhat confused when the economy begins to strengthen. On one hand, economic growth is good for earnings. On the other hand, an improving economy increases the odds of a Fed stimulus reduction...
Central Banks Are Terrified Of DeflationOn December 29, 1989 a massive inflationary bubble began to pop in Japan. As prices dropped, investors with cash sat on their wallets waiting for lower equity prices. The desire to “get out”...
Central Banks Are Not Going AwayEvery once in a while someone summarizes the big picture in a simple way. Bill Gross of PIMCO noted the following in his most recent investment outlook:Don’t fight central banks, but be afraid.Why is...
Labor Market Keeps Presses RollingThe table below puts some context around the impact of the Fed’s bond buying program. It tells us several billion dollars of freshly printed money will be pumped into the global financial system this week...
Wednesday’s News Was Good, But How Does Big Picture Look?With some better than expected economic news to digest, the S&P 500 was up 5 points early in the pre-holiday session, which added to the bullish list of things to be thankful for...
Rally Killers?In recent weeks, we have covered numerous misconceptions relative to rally killers:Stocks cannot continue to rise with PE ratios elevated.Rallies not led by financials are doomed.Investors have reached a...
Central Banks Provide Headwind For BearsIf you have been around the financial markets for any length of time, you are familiar with the expressiondon’t fight the Fed. The corollary is don’t fight global central banks when they are...
All Present Near Major Stock Market TopsWaning momentumBad breadthDefensive credit marketsCentral Banks Are Part Of MarketsBefore we examine the bear market red flags that were waving in 2000 and 2007 and how they relate to 2013, it...
Fed Brings UncertaintyOn Wednesday, the Fed minutes hinted at tapering in the months ahead. The stock market sold off on the news. Less than 24 hours later, a tame report on inflation pushed the markets back into “taper later” mode. From...
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