Sven Henrich via Northman Trader Newsflash while the tech bubble is running: Most major indices still peaked on June 8th, a month ago. Hey, it may mean nothing as yet another stimulus package is just around the corner or so conventional wisdom goes. Who can say, but I’ll share some charts on the $DJIA here...
Sven Henrich via Northman Trader At this stage market are basically just a liquidity meth lab, an artificial behemoth constructed and subsidized by the Fed stepping in on any downside in markets. Following $3 trillion in liquidity injections in 3 months ($12 trillion annualized) markets have entirely disconnected from the economy and any traditional valuation metrics....
Sven Henrich via Northman Trader Onto the dog days of summer. The first half of 2020 has been intense for all involved and the second half looks to be intense as well. Stepping back from the daily noise of headlines it may serve useful to look at the big picture. For now there is little...
Sven Henrich via Northman Trader An eventful week in markets and the economy as the month and quarter are coming to a close next week. The broader market peaked on June 8th on the heels of unprecedented central bank intervention but has since failed to make new highs other than the Nasdaq. Any subsequent efforts...
Sven Henrich via Northman Trader First they dismiss you as a conspiracy theorist then they join you. The secret is out, the Fed is busted: Central banks have distorted asset prices far above the economy.I’ve been harping about the market cap to GDP ratio for a while and even called the Fed’s asset price distortion...
Sven Henrich via Northman Trader Don’t let new highs on Nasdaq fool you. It’s still a bear market and I can prove it. First let’s acknowledge they are have and continue to throw the kitchen sink at this: Historic monetary and fiscal stimulus with more to come apparently as the powers that be are discussing...
Sven Henrich via Northman Trader What I really like about our Straight Talk episodes is that it they are completely agenda free, there are no restrictions, it’s just the 3 of us talking and discussing the issues on our minds. What you see is what you get. Our honest opinions. You may not agree with...
Sven Henrich via Northman Trader Small caps drop over 15% in 4 days only to rally over 10% in less than 24 hours. A rally was not a surprise after such a steep and fast drop. What probably shouldn’t have been a surprise, but still ended up being one was how quickly the Fed felt...
Sven Henrich via Northman Trader And then it happened. A vicious sell off seemingly out of the blue putting a sudden end to the steepest rally ever with many indices and individual stocks getting hammered seeing sizable declines just as Nasdaq was making new all time highs and $SPX was going green for the year...
Sven Henrich via Northman Trader President Trump is mocking Warren Buffett for having sold his airline stocks, Druckenmiller crying on TV about having been humbled by the market while every Robinhood retail trader piling into ever more into calls is laughing all the way to the bank. The professionals gobsmacked at the complete upside down...
Sven Henrich via Northman Trader In this week’s edition of Straight Talk Guy Adami, Dan Nathan and I are diving into the surprising jobs report, the hot topics of the widening wealth gap and social unrest, the Fed’s role in all of it, the implications of the widening rift on our society, the risks of...
Sven Henrich via Northman Trader Well, they’ve done it again. The Fed has once again managed to erase the larger market pain. This time it was not the standard correction that was erased, this time they erased a market crash as $NDX is trading at all time human history highs. I, for one, have to...
Sven Henrich via Northman Trader On February 16 in $AAPL Check I had issued a technical warning on $AAPL as it was trading at around $325. The technical warning came with a recognition that the stock was very expensive: “$AAPL now has a market cap north of $1.4 trillion with a forward multiple of 20.6 and...
Sven Henrich via Northman Trader Another week another Fed save as Jay Powell’s 60 minute interview aborted the market weakness from the week before resuming in a weekly market gap up which was further fueled by yet another conveniently timed false hope vaccine headline. Markets remain a Fed chase operation as the Fed’s balance sheet...
Sven Henrich via Northman Trader First off a big thank you to everyone watching last week’s debut of our webinars. We didn’t know what to expect, but we felt the issues we highlighted deserved a deeper look, not only in last week’s episode but in future discussions as well. From the overwhelming positive feedback we...
Sven Henrich via Northman Trader We live through very unique times, not only because of the shock of the coronavirus that recently hit the world unexpectedly, but also because of large complex structural issues that have been building for decades. A popular mantra says the stock market is not the economy and the economy is...
Sven Henrich via Northman Trader A violent rejection in markets following a furious rally that began on March 23. Small caps rallied 10% in 3 days only to give it all away in just 2 days.A coincidence? Hardly. Firstly the risk levels of this rally were well advertised in advance including on March 28 in...
Sven Henrich via Northman Trader The Fed poisons everything, and I mean everything. From markets, the economy, and I will even go as far as politics. Sounds far fetched? Let me make my case below. But as much as the Fed poisons everything this crisis here again reveals a larger issue: The system is completely...
Sven Henrich via Northman Trader New bull market? No. Unproven. New lows to come or a retest? No. Unproven. Markets are engaged in a key battle between the worst evolving fundamental picture in our lifetimes on the one hand, and the largest set of liquidity injections in history. A looming $3.7 trillion deficit, a Fed...
Sven Henrich via Northman Trader Nasdaq green for the year. What crisis? The Fed’s got this. Only took $2 trillion in balance sheet expansion in four weeks and all is well again. Non. Sense. Indeed I can show you just one chart that suggests, if history repeats, that this entire rally will make ways to...