Archive | Market Dynamics

Did Janet Yellen just step out-of-bounds?

A strange thing happened during today’s Federal Reserve testimony in front of Congress:  Janet Yellen told the world that she felt a particular sector on the equity markets was overvalued.  More specifically:  Janet Yellen decided it was in the Federal Reserve’s authority to knock some of the wind out of social media and biotech stocks.  We’ve re-read […]

Continue Reading 2

Rick Santelli vs. the Talking Heads

Today’s pro-Fed vs. anti-Fed showdown on CNBC was highly entertaining and highly infuriating all at the same time. Here’s the problem with the closing argument: Those that argue that ‘the market has risen ergo the Fed has succeeded’ not only misunderstand the role of the Federal Reserve (as Santelli pointed out), or to whom the benefits […]

Continue Reading 5

Is the market about to crash? Rolling returns say “yes”.

ZeroHedge is running this chart at the moment.  It’s a nice visualization and certainly food for thought.   For the record, we agree that it sure looks ugly.   Cumulative / consecutive returns show the market entering the historic “crash-zone” right about now.   It’s important to note however, that this visualization would have done little to predict […]

Continue Reading 0