Bigsky Investments®
  • Home
  • Equity Research
  • Blog
  • On Watch
  • Market Data
    • Portfolio
  • 🌲

Violent Consolidation. Yields Pricing in More QE

10/4/2015

0 Comments

 
Picture
Last week was a wild, tumultuous week. Underneath the surface we are seeing some pretty major changes. 
The Fed has lost all credibility after Janet Yellens 'inflation' speech. The Fed choked & did not raise rates when they said they were going to. As a result, the market is confused but could be showing early signs of pricing in another round of QE.
Picture
I have been watching this chart of 10yr Treasury Yields for quite some time. It was looking promising that yields would begin to rise, but when the Fed didn't act: The trade began to unwind.
Picture
A Market Hellbent on Chopping Everyone to Pieces. Price continues to violently consolidate its post-crash range with many violent reversals.
You can see watching real-time price action that stocks have somewhat linked to the dollar in recent weeks. Meaning, when stocks go up, the dollar also goes up. This is an interesting relationship to me, one that seems somewhat paradoxical as a rising dollar should in theory put a lid on equities.
Picture
The BDI remains weak with momentum showing signs of rolling over underneath the daily pivot point. The shipping industry continues to show no signs of economic strength.
Picture
I remain Bearish on Oil prices. However, oil has been working through it's own violent consolidation with intense intraday whipsaws. I'm staying away from oil until support finally gives out.
Picture
We can see that for the last Quarter Bears have been Beating Bulls quite brutally. However, recently Bulls have managed to hold prior support levels & are attempting to push us up through a fast zone. If successful, we may potentially see a very fast and violent move into areas of strong resistance around WLSH 2100
Look, at the end of the day, what is coming is inevitable. The Centrally Planned Ponzi-Bubble will implode and stocks will head much lower. However, price action is compelling enough for me to lay off the short side in the short-term, at least until Bears once again wrestle away initiative from the Bulls. & begin to break us lower.
0 Comments



Leave a Reply.

    Picture

    R. J. Sullivan IV

    Equity Research
    Portfolio Management
    ​Trading

    Picture
    Picture

    Archives

    September 2019
    March 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    April 2018
    March 2018
    January 2018
    October 2017
    July 2017
    May 2017
    April 2017
    March 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    November 2013
    October 2013

    Categories

    All

    RSS Feed

© BIGSKY INVESTMENTS®​

DISCLAIMER: This is a personal web site, reflecting the opinions of its author(s). It is not a production of my employer, and it is unaffiliated with any FINRA broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities. DATA INFORMATION IS PROVIDED TO THE USERS "AS IS." NEITHER BIGSKY INVESTMENTS®, NOR ITS AFFILIATES, NOR ANY THIRD PARTY DATA PROVIDER MAKE ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND REGARDING THE DATA INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.