201410.19
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A Closer Look: Market Cap

After a slow, stubborn march forward to the 2000 level, the S&P 500 Cap-Weighted Index ((IVV) has broken down in the last couple of weeks. Although not exactly a surprise, the index broke both moving averages on its way to support. If it wants to limit the technical damage, which is already pretty grim, the index…

201410.19
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Was That It?

Stocks fell last week for the fourth week in a row and there was the whiff of panic mid-week. Despite that losing streak the S&P 500 is only 6% from its all time high but the pain for the leveraged investing crowd (the misnamed “hedge” funds) appeared to hit a crescendo last week – at…

201410.12
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A Closer Look: Commodities

The GSCI Commodity Index ((GSG)) consists primarily of Energy, but also includes Agriculture, Industrial Metals, Livestock, and Precious Metals as part of its holdings. The index broke down during the month of July on the back of a stronger US Dollar. It failed a critical test once it broke through the 200-day moving average, and…

201410.12
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Down A Slippery Slope

This will be a shorter than normal commentary as I’m on my annual pilgrimage to Hilton Head Island to see old friends, talk about markets, politics and other subjects not suitable for a family friendly publication and to torture ourselves on the golf courses. As an aside, you are an evil man Pete Dye. I…

201410.05
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A Closer Look: World Markets

It looks like geopolitical events in Ukraine, Iraq, and Syria are finally taking their toll on the world’s markets. After making new all-time highs just two weeks ago, the S&P 500 Index (IVV) broke through the 2000 level and then its 50-day moving average.  It bounced off support towards the end of last week, and now is sure to test…

201410.05
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What’s Up With The Dollar?

The US Dollar index is up 8.6% since the beginning of July and it seems everyone is jumping on the King Dollar bandwagon. With Mario Draghi openly rooting for a weaker Euro and Abenomics pushing down the Yen the dollar has emerged, as it often does, as the safe haven for global investors. The rise…

201409.28
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Shoeshine Boys & Thinking At The Margin

It is said that Joe Kennedy got out of the stock market in 1929 because he started to hear stock tips from his shoeshine boy. Bernard Baruch had similar feelings: When beggars and shoeshine boys, barbers and beauticians can tell you how to get rich it is time to remind yourself that there is no…

201409.21
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A Closer Look: Market Style

Under uncertain yet seemingly improving economic conditions, the S&P 500 Index((IVV)) has inched its way forward for much of the year, gaining just over 10% during this low-volume, low-volatility period. The S&P 500 Value Index ((IVE)), which consists primarily of US large-cap value stocks in the financial services, industrial, and consumer cyclical industries, tend to…

201409.21
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Open Sesame

Open Sesame is, of course, the phrase used by Ali Baba to open the 40 thieves’ cave and plunder their riches in the Arabian Nights tale. It would seem an apt phrase to describe the frenzy surrounding the IPO of Alibaba, the Chinese internet commerce firm that floated shares in the US last week. Certainly…

201409.14
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A Closer Look: Market Cap

The S&P 500 Cap-Weighted Index ((IVV))  has been on a slow, stubborn march forward to the 2000 level for much of the year, but it seems as if the market has tired a bit in the last couple of weeks. If the index doesn’t bounce off the 50-day moving average this coming week, we might…