The VIX is in the cellar again. No fear. The stock market has been chopping sideways over the last six weeks. This kind of stock market lullaby can be dangerous.
In today’s brief market video I look at the NYSE Composite Index (NYA) on a daily and weekly basis, check a couple of indicators and 3 key ETFs.
I also look at the Baltic Dry Index for the first time in quite a while. Here we go again? Continue reading
In this post I look at the iShares MSCI Emerging Markets ETF (EEM). This is a highly liquid ETF that trades at a 50-day average of 75 million shares a day. Of the top ten holdings, six are from China, 2 from Taiwan, 1 from South Korea and 1 from South Africa.
So there is a fairly strong exposure to China. In fact of all EEM’s holdings, China has the largest percentage of any country at 27.07%. You get exposure to companies like Tencent Holdings Ltd., Alibaba Group Holding ADR, China Mobile Ltd., China Construction Bank Corp, Baidu ADR and Industrial & Commercial Bank of China.
In the charts below I first look at the weekly chart of EEM then at the daily chart. Continue reading
Jobs, jobs and more jobs. On Friday the jobs report exceeded expectations so the market exploded higher. This was just the opposite of what happened in June. You do have to wonder what the heck is going on.
Did someone in the Labor Department leave out something in June? Did they add it back in for July? Who knows. All I know is that the stock market went up and the SPX now sits a whisker away from an all-time high. The DJIA is a little further away and the NYSE Composite is even further away. Continue reading
Little Big Horn Battlefield
On this day in 1876 several hundred men, led by an overly confident Lt Colonel George Armstrong Custer, U.S. Army, rode into an area in what is now southern Montana near the Little Big Horn river.
They engaged an Indian village there and grossly underestimated the strength of their opponent. They ran into several thousand, very unhappy Lakota Sioux and Cheyenne Indians.
In what is now known as Custer’s Last Stand, Lt. Colonel Custer and about 210 of his men, were completely overwhelmed and wiped out.
In the mid-1980s I read a very detailed account of this event in a book called “Son of the Morning Star: Custer and the Little Big Horn” by Evan S. Connell. It was very good.
As I thought about Custer’s Last Stand, I thought about the stock market this week and the events surrounding the “Brexit” vote in the UK. I wondered if the market’s eruption in bullish enthusiasm on Thursday, might have been the bull’s last stand. Continue reading
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