Aside from a few pockets speculative asset prices (mortgage REITs come to mind), the Fed really does have plenty of time to use its mouth rather than its actual policy toolkit. One way of demonstrating this is to look at Core Inflation, as Dave Wilson’s recent Chart of the Day does. Looking at inflation growth…

Guggenheim Chief Investment Officer Scott Minerd has made no secret of his distaste for the relentless central bank intervention of the modern era. Here he shows us just how distorted things have gotten since the Chairman went into overdrive in 2011: Economic Fundamentals Suggest Higher Yield Historically, the real yield on 10-year Treasuries has closely…

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No sooner had the tape begun to show signs of exhaustion after a few rough days than the Fed leaks its latest hug-n-kiss combo to buyers of risk assets via the anointed high priest of Fed Whispering, Jon Hilsenrath:   Fed Likely to Push Back on Market Expectations of Rate Increase the Fed is talking…

Heavy Japan on the show today. Scott plays devil’s advocate because all four of us agree that the upside here is still to come despite the recent correction. I never like being in agreement with three other traders, but what are you gonna do?

If you haven’t yet read Matthew Phillips’s fascinating tale of HFT and why the robots are now losing, I highly recommend it. Buried in the story is this reminder of what can only be described as the worst trading error of all time… last August, Knight Capital crippled itself. Traders have taken to calling the…

The market is exhausted. The pops have no verve, no… je ne sais quoi. You learn to read the tape over years and decades, not months and quarters. Everyone who can do it sees this exhaustion, even without confirming data. Rallies are being dumped on and signs of “distribution” are everywhere. Let’s look at the…