Pullback Continues Into Next Week
Last week a number of our models downgraded the stock market against the backdrop of euphoric and greedy pockets. On Wednesday I thought we could see a bounce in the S&P 500, but the other indices were not in the same place. I also thought the S&P could still end up a few hundred points lower. I have heard folks targeting the average price of the last 50 days which is only a percent lower from here. It seems to […]
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Date: November 7, 2025
Models No Longer All Bullish – A Look At The Indices
Last week, a number of our stock market models turned neutral to negative as I wrote in my Fed update post. That creates some crosscurrents given the seasonal tailwind and higher volatility stocks leading lower volatility stocks for most of the rally. The bull market is not over so folks do not need to ask about that. The best case for the bears is that stocks are entering a period of sideways activity that frustrates everyone. The S&P 500 is […]
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Date: November 5, 2025
***Q3 Client Update***
The third quarter of 2025 certainly had a lot going on, both in terms of geopolitical events, markets and the economy. Similar to Q2, the stock and bond markets were sanguine, rewarding investors who accepted varying amounts of risk with the S&P 500 up by 8% and the equivalent bond index (Barclay’s Aggregate) ahead by 2%. The economy continued to exceed expectations. Coming into Q3 I expected a quieter quarter than we saw in Q2 in terms of market volatility […]
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Date: November 3, 2025
Fed To Cut Rates, Dow 50,000 But Bumpy First, Buying Silver & Gold
Lots to cover today and not enough time. First, I am traveling the next four business days so my publishing schedule may be off. Today the FOMC concludes its meeting where they will cut interest rates by 1/4%. The stock market model is plus or minus 0.50% until 2pm and then a rally. With stocks at all-time highs and having rallied so smartly into the meeting, the success rate for a final two hour rally declines and the odds increase […]
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Date: October 29, 2025
Risk On Rules – Late Comers Punished in Gold & Silver
FYI, the annual Medicare enrollment period is now open through December 7th. Friday was the fourth Friday of October if I read my calendar properly. Very strong seasonal tailwinds begin today with the stock market already at all-time highs. Additionally, this is the last week of October where more strong seasonal tailwinds begin. I had thought the big down day with the long red candle a few weeks ago would not be the lowest low, meaning that I saw more […]
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Date: October 27, 2025
Tariffs Causing Worry For The Clueless – Dow 50,000 On The Way
So much non-market moving news that folks seem to fixate on. I guess we’re back to chirping about tariffs which you already know how much I oppose them. However, at the same time, I have also stated that contrary to many economists and academics I did not believe they would cause recession, befall the markets nor have a major impact on prices. There is ad that went viral with video or quoting Ronald Reagan that supposedly said tariffs hurt America […]
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Date: October 24, 2025
Punishing Gold & Silver Late Comers
Last week I wrote about gold, silver, rare earths and quantum computing sectors showing classic signs of greed and euphoria. Recall the man on the train to NYC who told me to “buy gold” and “those AI stocks”. Then I had a friend advise me to load up on silver. This friend had never offered me investment advice. Of course, the gold commercials are back. And the pundits on TV have revised history about buying gold 50-75% lower than current […]
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Date: October 22, 2025
All-Time Highs On The Way – Monday Morning Soapbox Preach
During the 2.8% plunge two Friday’s ago, I stated that the data suggested bullish implications over the ensuing five and ten days. Although I heard the media discuss the volatility and difficulty of last week, the markets were up and they look higher in the pre-market. As I always say, check the narratives and spin at the door. Use non-emotional data for decisions and analysis. Seasonal headwinds start to lighten up at the end of the week and the indices […]
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Date: October 20, 2025
Private Credit & Contagion Risk The Culprit
I have been discussing a 2-5% pullback for a few weeks, certainly not knowing why the market would pull back, only that it was set up. We now know the culprit, private credit and regional banks. For months, the alternative asset managers have been falling and hit with the ugly stick. Ares, KKR, Blackstone and Blue Owl are among the major ones. I had no idea why other than thinking there was an interest rate dislocation somewhere. That assumption was […]
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Date: October 17, 2025
Volatility Up, Small Caps Lead & 3 Year Anniversary
Volatility has certainly increased. From less than 15 to over 22. That’s almost 50% in short order. Stocks are int he midst of the mild pullback I have written about. 2-5% is the range on the downside. Weakness remains buyable. You know where money is going on an index level? The same place I have written about for six months, small caps. Below is a chart showing the small caps relative to the large caps. When the link goes up, […]
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Date: October 15, 2025
