Stock Market

Market Call: Melting Up?

Jul 2, 2023 2 min read paid

Growing confidence in the resilience of the economy has been one of the main reasons why the stock market has been so strong since October 12, with the S&P 500 up 24.4%, the Nasdaq up 32.4%, and the S&P 500 Transportation index up 21.0% since that date. On Friday, the S&P 500 closed up 1.22% at 4450.38 (chart). That&

Ed Yardeni

Too Many Smiley-Face Balloons?

Jun 21, 2023 2 min read paid

We asked Joe Feshbach for an update on his view of the market from a trader’s perspective: “Breadth has improved for the S&P 500. But the cumulative advance/decline line for the Nasdaq is a galaxy away from confirming the strength in the S&P 500. Sentiment is way too complacent here. Friday had the lowest put/call ratio in many months. Yes, it’s always

Ed Yardeni

The Bull Was Pleasantly Surprised by May's CPI Today

Jun 13, 2023 2 min read paid

Stock prices rallied from the open today on May's CPI report. It wasn't surprisingly good. But investors and traders feared that it might be surprisingly bad. That's been the modus operandi of this bull market since October 12. It's been rallying on all the bad things that aren't happening. So far, there's been no recession, no earnings collapse,

Ed Yardeni

Sentimental Journey: Mixed Feelings

Apr 6, 2023 2 min read paid

The Bull-Bear Ratio climbed for the second week to 1.94 this week—the highest reading since the January 4 week last year—after falling the prior two weeks from 1.83 to 1.38 (chart). Bullish sentiment increased for the second week, jumping to 48.6% this week, equaling the end-of-January peak, which was the highest since the end of 2021. Bulls outnumbered bears for the 20th consecutive week.

Ed Yardeni

Bad Breadth Again

Mar 28, 2023 1 min read

The ratio of the equal-weighted to market-cap-weighted S&P 500 stock price indexes is an interesting measure of market breadth. It is available daily since 1990 (chart). Based on this limited period, we can see that the ratio tends to rise following recessions and to peak before recessions. It bottoms just before or during recessions. The same pattern seems to apply to this ratio during bull and bear markets

Ed Yardeni

Jamie's Hurricane

Mar 9, 2023 2 min read

JPMorgan Chase CEO Jamie Dimon has been warning that a recession is coming. Today, ironically, the bank stocks took it on the chin sending the overall stock market lower because the economy is widely deemed to be too strong, and a solid gain is expected in February's payroll employment tomorrow. Furthermore, fears that next Tuesday's CPI report for February might be higher than expected raised concerns

Ed Yardeni

Fear Can Be Good For Stocks

Mar 1, 2023 1 min read

"Greed is good" is a catchphrase based on Gordon Gekko's quote "greed, for lack of a better word, is good" from the 1987 film Wall Street. That was the year that Fed Chair Alan Greenspan introduced the "Fed Put" as a way to stop panic selloffs in the stock market. For stock prices to go up, fear is sometimes better than greed.

Ed Yardeni

Listening To The Markets

Feb 18, 2023 2 min read paid

On a regular basis, we all need to listen to the markets. They process a tremendous amount of information. They reflect the opinions of lots of buyers and sellers. Their price action can tell us a great deal about the economy, financial conditions, and sentiment. Joe Feshbach helps us to do just that based on his 40+ years trading the financial markets. He had expected that the S&P

Ed Yardeni

Join Me As My Guest In NYC With A Special Valentine's Day Discount

Feb 10, 2023 2 min read

I’m incredibly excited about an upcoming opportunity for you and I to meet personally, talk investing strategies, and answer any in-depth questions you might have (not to mention I can save you $200 in the process)! Specifically, I am speaking at MoneyShow’s landmark Global Portfolio Strategy Summit. It runs from Feb. 19-21, 2023 at the New York Marriott at the Brooklyn Bridge, and it’s going to be

Ed Yardeni

They're back!

Feb 8, 2023 2 min read

We warned you that they would be back soon. The FOMC's blackout period ended last Thursday. Fed officials have been squawking like hawks again since Friday. They are all sending more or less the same message. They are aiming to continue to hike the federal funds rate in 25bps increments a couple more times to 5.00%-5.25%. That should be restrictive enough to bring inflation down,

Ed Yardeni

Breadth Is Looking Up

Feb 7, 2023 1 min read paid

First the bad news: Industry analysts are continuing to cut their earnings estimates for this year and next year (chart). Nevertheless, as of the February 2 week, the analysts collectively still were projecting an increase this year of 2.3% to $224.31 and an increase of 11.2% next year to $249.52. Those estimates are consistent with a mid-cycle slowdown in earnings this year and better growth next

Ed Yardeni

Young Bull Market?

Jan 13, 2023 2 min read

Last year, we thought that the S&P 500's bear market might have bottomed at 3666 on June 16, when sentiment was as bearish as it was when the index bottomed at 666 on an intraday basis on March 6, 2009. We were wrong. It fell to a new low of 3577 on October 14. We viewed that as a successful retest of the June low. So

Ed Yardeni

Page 8 of 18