Archives: Mish's Daily

Your Money Manager Is Not Prepared for This

Mish Schneider | April 1, 2020

Will Dubby Fuqua-Friend and Artist The market has fallen over 30% from the highs. Maybe you have already called your fund or 401(k) manager and asked to liquidate your losers or the entire account. Here is what you probably heard. “I don’t recommend it.” That is typically followed by, “If you do pull out now, you will miss the opportunity when the market turns.” I say to that GREAT, you did such a fine job

Is the Fed Spreading Rifts in the Market Multiverse?

Mish Schneider | March 31, 2020

A rift is a crack, split, or break in something. Hence the obvious title question-what is the Fed doing to engender a market multiverse rift? The Fed can only buy securities that the federal government guarantees. What the Fed has done on this round of QE, is buy investment grade corporate bonds and ETFs. In essence, that is what many consider nationalizing the markets. Then going one step further, March 31st, the Fed announced that they

S&P 500 and the Other Indices Still in Tight Range

Mish Schneider | March 30, 2020

After inside days in three of the four indices, Monday traded in an even tighter range. This made for some choppy trading conditions in the indices and many stocks. Again, we have a good technical setup as the DIA, and the Russell 2000 had inside days from Friday’s trading range. Plus, the S&P 500 and NASDAQ could not take out last Thursday’s highs. Referring to our outliers first- LQD or High Yield Investment Grade Bonds

Sell High or Sell Low, Overall Market Weakness is Inevitable

Mish Schneider | March 29, 2020

The market loves the stimulus by both the Banks and the Government. Or at least, we can thank both as to why the market stopped the bleed and rallied in some cases, over 20% off the lows. In the longer term, a lot will depend on covid-19, and its path to a flattening of the curve or not. For now, we welcome the relief rally and even more so, the inside days it created in

Key Technical Levels-The Good, the Bad and the Ugly

Mish Schneider | March 26, 2020

This is a shot  of our BigView tool-the indices with our real motion indicators. All you need to know- First-the momentum has turned the corner for falling to rising. Secondly, here are the key closing levels for the week to determine how much if any, risk you should take home for the weekend. Indices-Closing Levels In the S&P 500-SPY-it must close over 256.35. The 200-week moving average is 264.00 A close below 241 not healthy.

Economic Modern Family Gnomes-How’d They Do?

Mish Schneider | March 25, 2020

We came into today with Transportation IYT, Retail XRT, Biotechnology IBB, and the Russell 2000 IWM all having inside weeks. I do not mean any insult calling a Family of my creation gnomes, but since the rally today was mythical and perhaps not real, I thought it apt. Yesterday, considering the storm clouds above the market and the Family, we wondered how can a lonely wooden house keep standing in the midst of a storm?

The Economic Modern Family’s House Still Stands

Mish Schneider | March 24, 2020

I expected a 5-10% rally off the lows. What I did not expect, was it to happen in one day. However, the bigger question now is, is there more? Fundamentally, the problems are still very much problems. Italy’s death rate continues to spiral. India shut down. The S&P Global Ratings downgraded Delta Airlines to junk. Unemployment and bankruptcies are swelling. The oil crisis is still a crisis with a potential sea change should other countries

To All the Bulls I’ve Loved Before

Mish Schneider | March 23, 2020

Rather than comment on commodities, which I hope you read in my blog about over the weekend and saw today how well they performed relative to the overall market, I want to dedicate the Modern Family to those singing, “To All the Bulls I’ve Loved Before.” In case you’re wondering, that title stems from Willie Nelson’s “To All the Girls I’ve Loved Before.” The song is dedicated to the bulls, whom the market loved before.

Who’s Done the Market Wrong?

Mish Schneider | March 22, 2020

“Come up and see me sometime,” are six words nobody is saying these days. The film She Done Him Wrong, was made in 1933, although it takes place in 1890 NYC. Mae West’s character Lady Lou, an entertainer, receives a lot of expensive diamonds from her boss and benefactor. She later discovers that the financing for those diamonds comes from  sex trafficking and money counterfeiting. Can you see where I am going with this? In

Why Are Investors Drinking the Bullish Kool-Aid?

Mish Schneider | March 19, 2020

Today I asked this question on twitter: “Can I ask a simple question-why do I see so few thinking sell opp as opposed to the hopeful mentality of this must be a bottom? Why do you think this is like Dec 2018 and not more like October 2008 or worse?” I got a lot of answers, which I hope to help you ascertain some logical conclusions. Of course, I myself simply have to look at