How the Fed ate your pension

You will never retire. Get used to it. The last time we started ranting about the evils of the Federal Reserve’s Quantitative Easing program (QE) it was about how the Fed was pushing 50- and 60-year-olds out of the workforce and into “retirement” by creating a business environment that makes it more profitable to manipulate a company’s finances than actually make stuff and sell it. Now here’s the rest of the story: the same process that is pushing you or someone you know out of a job is going to make … Continue reading

Market preview Mar. 30, 2015

SPX: Marking time to the end of the quarter Last week The S&P 500 cash index ($SPX) closed at 2061.02 on Friday (Mar. 27), down 47 points for a net weekly loss of 2.23%. That’s the loss from close to close; but the SPX also moved from a high at 2114 to a low at 2045, a decline of 69 points, before we saw a little bounce. In effect the market gave back almost all the gain it made on the surge from the Fed’s dovish statements around the Open … Continue reading

March markets as volatile as the weather

 By Nat February was a terrific month for the stock market, but kind of crummy for everything else. Now we have to face the ides of March, when the weather changes and the world prepares for a reset. For investors, the future is not likely to be nearly so pleasant as the past. The real world vs. the market. In the real economy, February was a bust. The fundamental economic reports that are supposed to drive the market were almost universally dismal. US gross domestic product, up 5% in Q3, … Continue reading

Intraday “travel” is increasing

One of the changes in market behaviour that often appears near inflection points is an increase in the intraday range, The market may show relatively little movement on a daily basis, from close to close. But the distance the price “travels” in the course of the trading session starts to get longer and longer. We are seeing something like that development in the S&P futures in the last few weeks. The back-and-forth movement is a reflection of the increasing struggle between the buyers and sellers. Here is the 60-minute chart … Continue reading

A $2,500 day in the market

Outcomes – Jan. 13 Nat’s inflection points, called in yesterday’s trading plan, caught the top and bottom of today’s move very precisely, and captured almost 50 points for anyone trading her calls from the Daily Treading Plan. In the mini-futures, a 50-point move is worth $2,500… for each contract. Her second sell number was just a couple of points from the high of the day, and her second support level was just a couple of points above the bottom. Here’s the intraday chart (five-minute bars):   … Continue reading