The U.S. dollar rose sharply higher after the U.S. Federal Reserve announced its first interest-rate increase of 2016 and signaled that it expected to increase rates 3 more times in 2017. Stocks traded sharply lower, while yields soared. The 2-year Treasury yield, which was the most sensitive to the Fed, shot to a seven-year high… Continue reading Fed Surprises and How They Affect Your Finances
Italy’s referendum was defeated. The EUR/USD fell to a 20-month low of 1.0505; however, the pair bounced back immediately. The EUR/USD fell to its lowest level since March 2015 at 1.0505; however, a Renzi resignation somehow ignited the rebound from the low and the pair never looked back. From the daily chart though, the… Continue reading Euro Bounced back after the Referendum Outcome in Italy
Euro continued to slide after the Italian referendum. EUR/USD opened with a huge bearish gap as exit polls showed the ‘No’ vote in the Italian referrendum heavily in the lead. The “No” votes are winning in most regions. Based purely on the chart, if this is a definite break below the 1.05 level, it’s… Continue reading Is Euro Heading Toward Parity against Dollar after the Italian Referendum?
The S&P 500 forward P/E has hopped to 16.9 from 16.4 on Nov. 8 while the P/E for the small-cap S&P 600 took off to 19.9 from 17.4 during a similar period, the highest of the current bull market. These levels are high and probably cannot sustain any further market overheated situation unless we can see… Continue reading Santa Claus Rally?