Archives: Mish's Daily

Can the Market Ignite into Flames Without a Match?

Mish Schneider | June 17, 2019

How many of you have tried this while hiking or camping in the woods? You gather a stack of dried sticks, hold a mirror so that the sun reflects on those sticks, and then try to ignite a fire. I imagine most of you were unsuccessful and thankful you also carried matches or a lighter. The photo shows a scientist trying the same experiment with marshmallows. Way more fun than sticks! Now, the market seems


The Yellow Jacket and the Ant: A Market Legend

Mish Schneider | June 16, 2019

There is a Nez Perce tribal legend about the Yellow Jacket and Ant. In the legend, the ant invades the living space of the yellow jacket because he sees that the bee is eating salmon. The ant, becoming jealous, starts a fight with the bee. The ant exclaims that he has the same rights as the bee and should also be enjoying that salmon. The bee calls the ant a runt. That enrages the ant,


Hence, the Market Manipulates the Investors

Mish Schneider | June 13, 2019

With the market ignoring any potential bad news, it seems to live in each hopeful moment, like that of a dog. A dog’s main motivation is treats. The market’s main motivation is also treats-vis-à-vis, bad news means the Federal Reserve will cut rates. It’s kind of like calling your dog a bad boy, but then he gives you a kiss, so you hand him a treat. He’s just so darn cute, you cannot help yourself.


India, Russia and China Make Three

Mish Schneider | June 12, 2019

Will Dubby Fuqua Artist Arnold Lieberman Gallery To counter Trump’s’ protectionism, India and Russia are backing a “new” multilateral trading system. Today, published in South China Morning Post, Lee Jeong-ho wrote an article about how Putin, Xi, and Modi are meeting at the Shanghai Cooperation Organization Summit this week. The topic? China hopes that India and Russia will support a trade initiative to counter any tariffs that Trump imposes on China. The summit is a


QE Made the Market Float: Now It Could Turn Out a Drag

Mish Schneider | June 11, 2019

Every day of our lives, we learn and experience new strategies, opinions, and patterns that have to be incorporated into our personal belief systems. Sometimes, facts are simply rejected because they contradict our philosophies. Other times, facts seem to be compatible with our beliefs and confirm that we are on the right track. However, sometimes what served us well before, may not serve us well now. The Fable quoted in the photo represents that these


How the Gold:Silver Ratio Chart Saved Us

Mish Schneider | June 10, 2019

A while back I did a Daily blog on this ratio. Since then, gold rallied up to $1330 an ounce (give or take.) Silver rallied up to $14.05 The bullish articles and tweets have lit up my computer screen. Here’s an excerpt from one: All things considered, the bull case for gold has massively strengthened. We are seeing USD weakness as economically underperforming regions are not able to push the USD up. Additionally, we are


Who or What is Pulling the Market’s Strings?

Mish Schneider | June 9, 2019

With a downbeat jobs report, falling yields and U.S. Dollar, gold rallying along with the volatility index, the market ran up another 250-300 points. The Dow Jones, after last Monday’s low of 24,700, shot up over 1300 points by the end of the week. Yet, my theme of definitely maybe prevails. The level of conflicting tweets about China, Mexico, Russia, the Federal Reserve, etc., do indeed leave investors feeling manipulated. I have seen rumors and


Is the Market Action a Case of Definitely Maybe?

Mish Schneider | June 6, 2019

Definitely maybe keeps coming up. You cannot park here, unless you are inanimate. A legitimate parking spot? Definitely maybe. Definitely maybe the Banks and Federal Reserve will cut interest rates. Definitely maybe the tariffs on Mexico will go away. Definitely maybe China will come to the table. Definitely maybe we are heading into a recession. Definitely maybe the market will run to new highs. Definitely maybe the US will wage war with Iran. And so


Market Blooms Among the Spikes

Mish Schneider | June 5, 2019

Planted outside our stucco wall, this cactus flower has not bloomed in 13 years. The extraordinarily wet spring may have flooded food crops, but it has also helped the cacti flower. Cacti do not need that much water to survive. However, the extra amount of rain has meant the difference between surivival and thriving. (thrivival?) With that in mind, we turn to the market. With its very survival at stake, the market has gotten an


Did the Market Flip, or Did We Kick a Dead Horse?

Mish Schneider | June 4, 2019

Last night we wondered which arrow Cupid’s got up his wing. The one to arouse a rally or the one to ignite aversion? If we imagine this horse as the correction, then Cupid’s arrow should restore her to her feet. We have carefully tracked Semiconductors as SMH has been the strongest of the weakest of the economic Modern Family sectors. We noted that SMH is below the 50-WMA, but not by that much. Therefore, that