Author Archives: Rick Pendergraft

Fed Makes “Insurance Cut”, President Trump Not Happy

The Fed Open Market Committee concluded its two-day meeting on Wednesday by cutting the target Fed Funds rate by 25-basis points. This is exactly what the majority of investors and analysts thought they would do and most thought it is what they should do. However, President Trump was not one of those in the majority and he immediately went on ...

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Rotation from Growth to Value – What the Heck Does this Mean?

Earlier this week we saw trading action that was somewhat odd and it could be rather significant if it continues to occur. There was some coverage from the financial media, but I saw very little on this subject in the mainstream media. The development I am talking about was a rotation from growth stocks to value stocks. Granted, the rotation ...

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The Markets: Will a China Trade Deal Dominate?

Over the last 18 months or so, the market direction has been determined by the trade war and various news stories, and tweets from President Trump. The overall market has been more volatile and the market hasn’t gained much ground even though there have been some pretty wild swings. From January 22, 2018 through the close on September 9, 2019, ...

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Economic Indicators: Slowdown Coming?

Investors and economists have been showing concern about the economy for some time now. Different signs have been cropping up here and there, and that helped pressure the Fed into making a rate cut at the end of July. One particular signal that I have been tracking for almost a year now is the 2/10 yield curve. It inverted recently ...

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September – The Worst Month for Stocks

Stocks were extremely volatile in August as the market got whipsawed by various developments throughout the month. The S&P gained or lost over 1% in 11 of the 21 trading days during the month and in the end, the index dropped 1.8% on the month. Now we enter September with investors nervous and the ninth month is historically the worst ...

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Global Tensions and Recession Fears Send Gold to a 6-year High While Bullish Sentiment Soars

I wrote a bullish piece on gold for Seeking Alpha last September 6. My main argument for the bullish posture was the commitment of traders report. If you’re not familiar with the commitment of traders report, it is released by the Commodity Futures Trading Commission each Friday and it shows the net positions of three different groups—large speculators, small speculators, ...

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Positive Surprises for Retailers

The retail sector has been lagging the overall market by a wide margin over the past year. The SPDR S&P Retail ETF (NYSE: XRT) is down over 20% while the S&P 500 is up just over 2% in the past year. Despite the lagging performance by the retail sector, we have seen some big moves to the upside by some ...

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