Fed vice chair Fischer tries to talk up inflation

Former Israeli central banker and now Vice Chair of the Federal Reserve Stanley Fischer was jawboning at Jackson Hole conference over the weekend, since Fed chief Janet Yellen did not attend. He believes the Fed is on track to raise rates this year, until it won’t be able too. He also said the Fed won’t […]

Rage against the algo

This week’s US equity trading is all about the robots taking over. The markets have been the victim of High-Frequency Trading. The black boxes whipsawed stocks back and forth with little regard for anything but the next sub-penny move. Many 200 pts. down, 300 pts. up intraday moves have the hallmark of algos grabbing pennies […]

Market’s purple haze transparency

US stocks closed Wednesday after a 619 point gain to reach historic Monday afternoon highs, and yet some analyst are giving the all clear. The last rate-raise bull at the Fed, NY chief Bill Dudley said in a speech Wednesday morning that he thought September rate hike was off the table. This after his trading […]

Plunge Protection Team to the “rescue”

For the second day in a row US equity futures are up almost 2% before the open. This while China and European bourses are selling off, in some cases hard. On Tuesday, Dow futures were up over 300 points prior to opening and held that level into the open, only to see it fade more […]

The Opium War of the 21st century

This is your stock market: -588 points. This is your stock market on heroin, +601 Dow futures. Like the Opium Wars of the middle 1800’s, China is supplying the needed dose by cutting its benchmark interest rates and lowering banks’ reserve requirement ratio in order to provide additional borrowing to a debt leveraged economy after […]

Chinese takeout, Part 2

Welcome to no growth economy. Market watchers said there was no bubble. Well tell that to equity investors in the Shanghai Composite, who have seen a 60%  to the downside since mid June, erasing all this year’s gains. That’s what a bubble looks like when it explodes. The doors are small and the crowd racing […]

August’s angst augurs agita

A quick update from the Catskills. Anyone reading this blog for the last month, should not be surprised by stock sell off this week. Global economic growth is cratering as we enter the currency wars of devaluing their currencies in the hopes of spurring growth through cheaper money. These actions — of course — hurt […]