Recent content by traderchild

Great Britain’s GDP was just revised up another 0.7%, off of strong manufacturing and construction numbers, further underlining steady overall growth. The BoE recognizes these positive data outputs and sports a hawkish stance on quantitative easing. In other words –that’s a government...

Today, I'm looking at once heavily favored home builder ETF, $XHB. A few months back (during the height of QE3), this basket of housing stocks was the darling of many a trend-trader. Alas, speculation points to a possible near-term end to quantitative easing. As such, the 10-Year Treasury yield...

“Equities have historically traded at a discount to GDP except for two times in the last 50 years,” he said. “In the late 1990′s we traded at 148 percent over GDP, and in 2007 we traded at 118 percent over. Unfortunately, both times were followed by a serious correction. We are now at 110...

Ok... I admit I do have a little bias against Detroit and what the government/unions did to the city. But even with the bankruptcy I see situations getting far worse there before they get better. It is pretty much Greece on a smaller scale.

I agree. I don't think anyone really knows whther a soft-landing is even possible. That's why you've got so much potential for volatility surrounding the Fed meetings. I certainly don't blame them for wanting to pull the rug out gently!

Don’t misunderstand me - I’m in no way a Fed-fan boy. I believe that the Fed bears much of the blame for the financial meltdown after it lowered interest rates to 1% post 9/11. I’m actually in favor of limited government in most respects. But I understand problems of scale require proportional...

I stand by my statement. On both relative as well as absolute terms, I believe that history will look favorably on the Fed’s actions over the past several years.

Guess what? Accommodative monetary policies won’t be around for much longer. Everyone knows it. The big question is…can Bernanke (or whoever happens to be holding the reigns) bring us down for a safe landing – without a debilitating sell-off? If the records being shattered by the major indices...

The markets have been on an extended vacation as of late. Equities managed to squeeze out some gains at the end of trading yesterday. The major indices even won battles with each of their respective 10-day moving averages. Despite losses early on amidst mixed earnings reports, everyone got to...

Home sales had a noticeable miss yesterday, and home builder stocks were down across the board. ETF $XHB is sitting at just under $30.70, although it did fare better than $ITB. The lesser of the two (IMO) fell by 1.2%. The fact that the 5.08 million current annual sales-rate is still 15% higher...

I’d agree with that. Right now, it’s very easy to draw the line between improvements in the markets and improvements in the economy. Under QE, our economy has grown at a minuscule annualized rate of 1.5% (as measured by GDP).Despite all of the positive data, that’s the economic reality...

The week’s coming to an end, and the broader market has been on an absolute tear. The main indices are making record closes left and right, with the Dow adding 1000 points in just 17 days. This is no doubt a liquidity driven rally. After all, the fundamentals haven’t changed at all. I currently...

Retail sales weren’t anything to shout about yesterday. The diminutive 0.4% increase was driven only by a 1.8% increase in auto-purchases. This stall in momentum definitely raises questions about overall economic growth – especially on the heels of slow-down talk during the Fed meeting last...

I’m so proud of our Fed chairman. I didn’t give him enough credit, but it looks like he might’ve learned from the past couple months of missteps. Finally, he’s starting to tell people what they want to hear. Nobody wants honest talk of nearing policy changes based on positive streaming data...

It’s been a relaxing few days for the markets, and today they’ve been back on the up. Momentum is positive in a big way, and for now, it’s got investors seeing green. But we’ve got a big week ahead: FOMC, Big Ben makes a speech, and to top it off – it’s earnings season. I’m hoping against hope...