King of the Hill

King of the Hill

  There’s a saying on Wall Street that says you should always “keep the trend your friend.” What is generally meant by that is whatever the market is doing from a price standpoint, you should probably try and follow along with it. In other words, don’t fight it....
Liquid Courage

Liquid Courage

  Liquidity is one of those market words that gets thrown around a lot. But what does it actually mean? At its core, liquidity is simply how much money is sloshing around in the financial system. When liquidity is plentiful, there is more capital available to...
Stay Home or Go Global

Stay Home or Go Global

  I like to call this week’s featured indicator the “Stay Home or Go Global” indicator. This is because it measures the relative strength of the U.S. stock market versus the global stock market. Here’s the basic idea. The top portion of the chart shows the ratio...
Manufacturing Momentum

Manufacturing Momentum

  The good news on Wall Street this week came from a place that has been stuck in the mud for a while: manufacturing. The latest Institute for Supply Management Manufacturing index jumped to 52.6, up from 47.9 previously. This was significant for a couple of...
What’s Up With the Dollar?

What’s Up With the Dollar?

  The U.S. dollar has been in the news a lot lately. Mainly because it’s been falling—a lot. Last year, the ICE U.S. Dollar Index, the benchmark index for the U.S. dollar, fell roughly 10%. This year, it’s already down another 2%. But should we really be...
The Discount Rate

The Discount Rate

  Interest rates are important for the stock market. In a technical sense, they’re what we call the “discount rate.” This is the rate at which the future cash flows generated by the companies in the stock market get discounted back to the present. Because of how...