Guidance Takes Precedence Over Earnings
On Thursday, the executives at Service Now (NOW) and IBM learned an important lesson the hard way as their stocks fell by 18% and nearly 10%, respectively. The stark message from Wall Street is that forward sales and earnings guidance […]
Hormuz: Why Markets Are Shrugging Off The Oil Shock
As of this writing, the Strait of Hormuz remains effectively closed since February 28. Roughly 20% of the world’s seaborne oil stopped moving through the chokepoint. The International Energy Agency described the event as “the largest supply disruption in the […]
The Dollar’s Funeral Keeps Getting Rescheduled
Last week, we noted that after the sharpest rally since May 2025, a correction was likely. Notably, those corrections come in two forms: a price pullback or a sideways consolidation. We got the latter. The S&P 500 churned between roughly 7,080 and 7,140 for most of the week. But Friday, did make a push to all-time highs. That kind of tight, high-level consolidation following an explosive move is technically constructive. Historically, it suggests the market is digesting gains rather than distributing them.
Breadth Is Lacking: Is The Rally Sustainable?
Having just hit record highs following an historically impressive 13-day winning streak, stocks are susceptible to a pullback or, at a minimum, consolidation. Beyond the direction over the next week or two, the bigger question is what comes after that. […]
Government Debt: Not What The Doom Crowd Thinks It Is
A funny thing about bull markets is that investors develop a very short memory about the previous bear market. Such is why cycles repeat throughout history as lessons must be learned and relearned.
Can Warsh Reform The Fed
On Tuesday, Kevin Warsh appeared before the Senate for his nomination hearing for the Fed Chair. The biggest takeaway is Warsh’s desire to “reform” the Fed. Based on his appearance, reform seems to cover the following three areas: Regarding current […]
GFC 2.0 Or False Alarm Part 2
In Part One, we explored how leverage and derivatives turned subprime mortgages into a crisis that nearly brought down the global financial system. With a better understanding of the derivatives and leverage that led to the Global Financial Crisis (GFC), […]
CAR Is Racing Higher
Our title above about Avis Budget Group (CAR) shares is a gross understatement. Since March 20th, CAR has risen nearly 500%, as we share below. While there are, and were, some favorable tailwinds driving the upward trend, such as rising […]
CPU vs. GPU: The Changing Semiconductor Landscape
Since the start of the year, the Philadelphia Semiconductor Sector Index (SOXX) is up 33% compared with the broader market, which is up only 4%. The primary rationale for the significant outperformance appears to be the insatiable demand for AI […]