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Market Oracle FREE Newsletter

ConsumerWatch

Monday, August 08, 2022

WARNING Corsair MP600 NVME2 M2 SSD Are Prone to Failure Can Prevent Systems From Booting / ConsumerWatch / Computing

By: HGR

NVME drives are supposed to herald greater speeds coupled with greater reliability over traditional platter spinning drives. However clearly the technology has yet to mature. And worse than mechanical hard drives when they go they tend to go fast! As illustrated by this 1tb Corsair MP600 drive which despite being listed as being 93% Good died within minutes, with the failure resulting in preventing the system from booting from it's good boot drive. So a sign that your NVME2 is on the verge of dying is if you experience failure or slow boot times.

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InvestorEducation

Saturday, August 06, 2022

Elliott Waves: Your "Rhyme & Reason" to Mainstream Stock Market Opinions / InvestorEducation / Elliott Wave Theory

By: EWI

R.N. Elliott's stock market observations fell together "into a general set of principles"

It's understandable why investors with little experience consult the market opinions of professionals.

But many of these new investors are left scratching their heads. Two headlines from July 29 indicate why:

  • [Fundstrat Managing Partner] says the 2022 bear market is over, stocks could hit new highs before year-end (CNBC)
  • Stock market's post-Fed bounce is a 'trap,' says Morgan Stanley's [Chief Investment Officer] (Marketwatch]

Yes, two directly opposing opinions that were published on the same day.

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Economics

Saturday, August 06, 2022

COST OF LIVING CRISIS NIGHTMARE - Expect High INFLATION for whole of this DECADE! / Economics / Inflation

By: N_Walayat

The Inept Governor of the Bank of England has miserably FAILED in the banks primary remit of pegging inflation at 2%. This video illustrates why the Cost of Living Crisis will soon become a decade long nightmare for most Brits.

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Economics

Friday, August 05, 2022

WHY PEAK INFLATION RED HERRING / Economics / Inflation

By: Nadeem_Walayat

When one looks under CPI inflation hood then one sees strong signs of inflation topping, given what we have already seen transpire in the commodities markets such as Gasoline prices having fallen since the May inflation report and many of the components such as Airfares also turning lower.

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Commodities

Friday, August 05, 2022

Recession Is Good for Gold, but a Crisis Would Be Even Better / Commodities / Gold and Silver 2022

By: Arkadiusz_Sieron

The US economy fell into a technical recession. As a safe-haven asset, will gold soar now?

What Is Recession, Anyway?

Ladies and gentlemen, please welcome the technical recession! According to the initial measure of the Bureau of Economic Analysis, real GDP dropped 0.9% in the second quarter, following a 1.6% decline in the first quarter (annualized quarterly rates). As the chart below shows, on a quarter-on-quarter basis, real GDP decreased by 0.4 and 0.2 percent, respectively. Thus, the US economy recorded two quarters of negative growth, which implies a technical recession.

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Stock-Markets

Friday, August 05, 2022

Stock Market Rallying On Slowly Thinning Air / Stock-Markets / Stock Market 2022

By: Monica_Kingsley

S&P 500 rose, driven by tech at expense of value, which is normail in economic slowdowns. The junk bond rally however stands out – a prime candidate to attract selling at the nearest whiff of risk-off. The many fundamental reasons described in Monday‘s article, remain intact, if there weren‘t geopolitical ones. Tellingly, the yield curve inversion continues deepening, and bonds aren‘t buying the tightening story in the least – they fear the Fed overdoing it. And that‘s a key catalyst behind yesterday‘s decline in real assets, with its new interpretations of neutral Fed funds rate, or „having enough not to make trade-offs“ inflation remarks.

Sure, ISM services PMI provided a daily boost to the rally, and so the revamp calculations behind tomorrow‘s non-farm payrolls would work (would the pesky hours worked sending the opposite message, get recalculated as well?) in a bid to keep the increasingly FOMO confidence in the S&P 500 rally going. It still has the hallmarks of a short-covering rally, and not of genuine animal spirits – that doesn‘t square with the dreaded R word.

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Commodities

Friday, August 05, 2022

SILVER’S BAD BREAK  / Commodities / Gold and Silver 2022

By: Kelsey_Williams

Bad breaks can be tough to recover from. The process can be arduous and can take a long time. Sometimes a full recovery remains elusive and distant.

Silver has a history of bad breaks over the past half-century.  Below is a series of charts that tell the story…

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Stock-Markets

Thursday, August 04, 2022

Stock Market Trend Pattren 2022 Forecast Current State / Stock-Markets / Stock Market 2022

By: Nadeem_Walayat

My stock market big picture remains to expect the Dow to target a trend towards 29,600 by late August / Early September. Note 29,600 is a TARGET for a low and NOT THE LOW, No one can KNOW THE LOW with any degree of confidence, all one can do is arrive at a high probability target and then look to see if the market confirms that expectation or not, so far the market is confirming it is heading for 29,600.

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Interest-Rates

Thursday, August 04, 2022

Should We Be Prepared For An Aggressive U.S. Fed In The Future? / Interest-Rates / US Interest Rates

By: Chris_Vermeulen

Traders expect the U.S. Fed to soften as Chairman Powell suggested they have reached a neutral rate with the last rate increase. The US stock markets started an upward trend after the last 75bp rate increase – expecting the U.S. Fed to move toward a more data-driven rate adjustment.

My research suggests the U.S. Federal Reserve has a much more difficult battle ahead related to inflation, global market concerns, and underlying global monetary function. Simply put, global central banks have printed too much money over the past 7+ years, and the eventual unwinding of this excess capital may take aggressive controls to tame.

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Stock-Markets

Thursday, August 04, 2022

Will the S&P 500 Stock Market Index Go the Way of Meme Stocks? / Stock-Markets / Stock Market 2022

By: EWI

Here's what usually happens when "financial lunacy" is prevalent

You don't hear much about the meme stock craze anymore -- and for good reason.

It's all but dead and has been for months (Barron's, Jan. 28):

A Year After It Began, Meme-Stock Mania Is on Life Support

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Stock-Markets

Thursday, August 04, 2022

Stock Market Another Upswing Attempt / Stock-Markets / Stock Market 2022

By: Monica_Kingsley

S&P 500 refused to swing higher yesterday, and bonds weren‘t much risk-on either. Revisiting the neutral Fed funds rate comments didn‘t do much good for risk sentiment, even though HYG doesn‘t yet reflect that with its closing price. A new attempt at 4,140s looks to be in the making, and even if we get a break higher, it‘s going to be a fake one, and fail. It would also coincide with a rejection of lower VIX values around 22, in favor of reverting back to the high 20s recent average.

The current optimism seems misplaced, and the upcoming ISM services PMI would reveal the slowly deteriorating internals of economic growth. Coupled with manufacturing PMI, these leading indicators illustrate a tough real economy to come in late 2022 / early 2023 – the dreaded R word.

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Economics

Thursday, August 04, 2022

What is our Real Economic and Financial Prognosis? / Economics / Economic Theory

By: Raymond_Matison

According to Webster’s dictionary, the definition of prognosis is a forecast, or a prediction of a probable course of a disease in an individual, and the chances of recovery.  In this article, we apply this definition of prognosis to our inanimate, yet seemingly “living and breathing” economy, and project its chances of recovery.

The world is filled with intelligent and highly experienced economists, and thousands of financial market observers who can give us a lucid and convincing interpretation of our economy and health of our financial markets.  As a result, you can find widely recognized professionals who will diagnose and predict the direction of our economy and financial health as to support our own personally biased view of reality – regardless of what that may be.  But independent of our own personally preferred views, what is the most probable reality we are likely to experience?  What is the real economic and financial prognosis? 

Government agencies and media are increasingly filled with unjustifiably adjusted and manipulated economic data, directed and misdirected propaganda, and outright lies, such that it is nearly impossible to judge the real strength or direction of the economy and the health of our financial markets.  Since small and developing nations are quickly learning these “tricks of the trade”, international media and government agencies are universally now also dispensing politically favorable rhetoric rather than truth.  So what measures can we review to accurately evaluate the health of our economy?

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Stock-Markets

Wednesday, August 03, 2022

The REAL Stocks Bear Market of 2022 / Stock-Markets / Stock Market 2022

By: Nadeem_Walayat

US Housing market variables are in a state of flux for we have the consequences of Quantitative Tightening with the Fed having started to sell $15 billion of Mortgage Backed securities per month, US teetering on the brink of recession given that Q1 saw -1.4% with Q2 also expected to be weak, a coin flip between +0.2 and -0.2 or worse and thus hey presto the RECESSION has ARRIVED! Brewing Financial Crisis 2.0 that I I flagged some 10 months ago where the reverse repo market of $1 trillion has now doubled to $2 trillion which implies increasing counter party risk where we wont know what the banking crime syndicate has exactly been upto in the housing market until banks start failing. Interest rate hikes of 0.75% when the Fed Chairman said 0.75% was off the table which means US rates are probably going to go a lot higher tham most can imagine today, consensus is 3.25% to 3.5%, reality could be north of 5%, so a lot of variables are in a state of flux which means instead of seeing clarity with more data I am seeing confusion!

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Interest-Rates

Wednesday, August 03, 2022

The ‘Wishful Thinking’ Fed Is Anything But ‘Neutral’ / Interest-Rates / US Interest Rates

By: MoneyMetals

With last week’s second 75 basis-point rate hike, the Federal Reserve now claims it has achieved a “neutral” monetary policy stance. That would mean, in theory, that interest rates are neither stimulating nor restraining the economy.

"Now that we're at neutral, as the process goes on, at some point, it will be appropriate to slow down,” Fed Chairman Jerome Powell said.

Powell was effectively telling markets he intends to pivot away from inflation fighting.

Yet inflation, even when measured by the Fed's own preferred gauge, continues to run hot.

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Commodities

Wednesday, August 03, 2022

Don’t Be Misled by Gold’s Recent Upswing / Commodities / Gold and Silver 2022

By: P_Radomski_CFA

Despite gold’s latest move higher, its outlook remains bearish. If its 2012-2013 pattern is to repeat, it means gold is now preparing for a big fall.

Patience Advised

Gold moved higher on Friday, so you might be wondering if this changed anything regarding the outlook. In short, it didn’t.

Let’s take a closer look at what happened.

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Commodities

Sunday, July 31, 2022

Aluminum, Copper, Zinc: The 3 Horsemen of the Upcoming "Econocalypse" / Commodities / Metals & Mining

By: EWI

This suggests "a burgeoning slowdown in economic activity"

It may seem strange to bring up deflation when surveys show that inflation is the public's number one worry.

But who would have thought that inflation would become a big issue, say, just two years ago?

Right -- a relatively small percentage of people. The point is: Things can unexpectedly change -- fast.

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Commodities

Sunday, July 31, 2022

Gold Stocks’ Rally Autumn 2022 / Commodities / Gold and Silver Stocks 2022

By: Zeal_LLC

The gold miners’ stocks have been thrashed in recent months, crushed as heavy futures selling slammed gold.  That obliterated any residual sector bullishness, leaving gold stocks wildly-oversold and deeply-out-of-favor.  But having weathered a rough early summer, the battered miners and their metal are trudging back into their traditional strong season.  That begins with robust autumn rallies really accelerating in August.

Seasonality is the tendency for prices to exhibit recurring patterns at certain times during the calendar year.  While seasonality doesn’t drive price action, it quantifies annually-repeating behavior driven by sentiment, technicals, and fundamentals.  We humans are creatures of habit and herd, which naturally colors our trading decisions.  The calendar year’s passage affects the timing and intensity of buying and selling.

Gold stocks display strong seasonality because their price action amplifies that of their dominant primary driver, gold.  Gold’s seasonality generally isn’t driven by supply fluctuations like grown commodities see, as its mined supply remains relatively-steady year-round.  Instead gold’s major seasonality is demand-driven, with global investment demand varying considerably depending on the time in the calendar year.

This gold seasonality is fueled by well-known income-cycle and cultural drivers of outsized gold demand from around the world.  Starting in late summers, Asian farmers begin to reap their harvests.  As they figure out how much surplus income was generated from all their hard work during the growing season, they wisely plow some of their savings into gold.  Asian harvest is followed by India’s famous wedding season.

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Stock-Markets

Sunday, July 31, 2022

US Fed Is Battling Excess Global Capital – Which Is Creating Inflation / Stock-Markets / Financial Markets 2022

By: Chris_Vermeulen

The US Fed continues to bring the big guns, raising rates another 75 bp (0.75%) on July 27, 2022. Even though they stated the economy is softening, current Inflation and CPI data suggest otherwise. The US Fed may be forced into another 75~100 bp rate increase next month if the US economy continues to show strong CPI and Inflation trends. There is only one other time in recent history like the current market environment – 1998~2004.

The DOT COM Bubble was unique in the sense that excess capital flowed into technology/internet companies’ hand-over-fist. It seemed all you had to do was register a URL, come up with some crazy business plan, and go talk to investors/VC. It was not a crisis like the 2008-09 Global Financial Crisis event. The DOT COM Bubble was a process of unwinding/consolidating excess capital away from a euphoric speculative phase in the markets.

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Stock-Markets

Friday, July 29, 2022

What it's like at a Stocks Bear Market Bottom / Stock-Markets / Stock Market 2022

By: Nadeem_Walayat

This clip from March 2009 illustrates what it's like at a market bottom, that had analysts stating at Dow 6490 that the Dow was nowhere near a bottom which was at least another 20% to 25% further below.

AT THE BOTTOM

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Personal_Finance

Friday, July 29, 2022

How to lock in a Guaranteed 9.6% return from Uncle Sam With I Bonds / Personal_Finance / Inflation

By: Submissions

By Chris Reilly

Do you want to turn inflation to your advantage?

Be a financial winner while everyone else is losing to inflation?

Today, I’ll show you a little-known investment that can do exactly this for a part of your portfolio.

Best of all… it’s guaranteed by the US government.

You’ll want to act on this soon. Because inflation just keeps getting worse.

On July 13, the government released the latest numbers...
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