Cabana’s CEO Chadd Mason shares his unique perspective on the markets here and across the world every Monday.
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This shortened holiday week, and the beginning of September has seen a resumption of selling in both stocks and bonds as yields moved up near the August highs. For those tracking the 10-Year Treasury, the level is 4.30%. This has resulted in the major stock indices all falling back below their 50-day moving averages and… Read the full article.
The major stock indices appear to have pulled themselves out of the “ditch” described last week. We saw all big three reclaim their respective 50-day simple moving averages. The rebound came on the back of a plethora of economic reports this week, including the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Index. We also… Read the full article.
Well, we are at the end of what has been a volatile week for both stocks and bonds. All the major stock indices failed to hold support at their respective 50-day moving average and despite a blowout earnings report from Nvidia Wednesday, selling resumed in mass as each index attempted to reclaim that important technical level…. Read the full article.
The stock market continues to pull back from its recent highs made at the end of July. We expected a pullback to the 50-day moving average (S&P 500) and that has happened. This is a typical first line of support where we would see prices begin to stabilize. That didn’t happen and we have now… Read the full article.
As we anticipated last week, the stock market is pulling back after two consecutive months of gains. I expect this will continue until the broad indices find the first level of support at their 50-day simple moving average. For those of you tracking the market-cap weighted S&P 500 (SPY), that represents a price of 442.35…. Read the full article.
Earnings season continues to roll on, with the majority of companies beating expectations on both the top and bottom lines. The resilience in the face of what we have seen with the rocketing interest rates is impressive to say the least. Let’s not ever forget that it is earnings that drive stock prices, and it… Read the full article.
Wednesday, the Federal Reserve concluded its July meeting and raised the Fed funds rate by another 25 basis points. We are now sitting at 5.25-5.50%, which is the highest level in 22 years. Chairman Powell left additional hikes on the table during his press conference. The Fed’s actions and rhetoric continue to put pressure on… Read the full article.
I hope everyone is enjoying some summertime and got to be with family over the July 4th holiday last week. Nothing is more important. This week we got some good news on the inflation front, as both the consumer price index and producers price index came in lighter than forecast. We are also continuing to… Read the full article.
All the major stock indices continue to digest the large gains seen in May, with particular emphasis on the Nasdaq 100 and market cap weighted S&P 500. We noted two weeks ago that the leaders of this rally were overbought and ripe for a pullback and some consolidation before attempting to move higher. This remains… Read the full article.
Stocks are currently digesting the rally that we have seen over the past six weeks. This is especially true for the market cap weighted Nasdaq and S&P 500, whose performance is largely dictated by large mega cap technology stocks. As we (and others) have pointed out many times recently, those few stocks have been the… Read the full article.
During the past week we have continued to see positive expansion in market breadth. More and more sectors are participating in the rally that began a month ago and has been supported almost exclusively by a few huge tech companies. In my view, this is a very positive development and strengthens my belief that this… Read the full article.
Three good things happened last week. First, our government avoided a catastrophic debt default and passed a resolution to raise the debt ceiling. Second, we got a really solid jobs report. Hiring continued to grow unabated despite all types of threats to the economy and, importantly, wage growth slowed at the same time. This was… Read the full article.
We head into the Memorial Day weekend with no deal on the debt ceiling and another hot inflation report. The Federal Reserve’s favored measure of inflation, the Personal Consumption Expenditures Price Index (PCE), came in above month-over-month and annual estimates. This has resulted in a jump in probability that the Fed will hike rates again… Read the full article.
We had our quarterly workshop in Dallas last week and I want to thank our partners around the country who came down and worked with us. I can’t tell you how much these mean to me personally and to Cabana as a whole. I leave each of these with new ideas and renewed passion to… Read the full article.
Year to date, we have seen the major indices (S&P 500, Nasdaq and Dow) move higher on the back of mega cap technology stocks like Apple, Microsoft, Meta and Amazon. We know this because the aforementioned indices are market cap weighted such that the larger the company in the index, the more its performance impacts the… Read the full article.
The stock market remains rangebound and indecisive heading into the next meeting of the Federal Reserve, which begins on May 2. The policy statement and interest rate determination will occur the following afternoon. Most analysts are predicting another 25-basis point hike, bringing the Fed funds rate to 5-5.25%. It is astonishing to think only a… Read the full article.
We have spent the past couple of commentaries looking under the hood, so to speak, of the equity market in an attempt to determine if the current rally has any legs to it – or is simply the next in a series of head fakes that we have endured during the past thirteen months. … Read the full article.
Last week we did our monthly webinar for our partner advisors around the country and attempted to do a deep dive into what is going on in this crazy market. We pulled quite a few charts and took a look at what is driving the market on the up days as well as the down… Read the full article.
Stocks entered free fall over the past few trading days as a huge bank (Silicon Valley Bank) failed due to a run on deposits coupled with bond losses resulting from the pace and size of interest rate hikes over the past year. Almost immediately, two other banks suffered the same fate. The Federal Reserve and… Read the full article.
Last week we discussed the apparent failure of the S&P 500 (SPX) to hold its’ early February breakout above resistance at 4100. The reversal to lower prices came as investors realized that inflation remains an ongoing problem and rates would likely need to rise further (and perhaps faster) than expected. This same reality continues to… Read the full article.
