Weekly Stock Market Forecast

This week we have a stock market forecast for the week of 12/5/21 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!

The S&P 500 (SPY)

Spy Weekly Chart - Stock Market Forecast

All the waiting and watching has paid off nicely as the S&P has topped and started to trend lower in earnest. This "break" will freak some folks out, but I still believe my forecast will prove true that this selling will catch a bid and reverse the market for a short period of time. Once that momentum burns off, a lower high will form, completing a "head and shoulders" pattern, and THEN WE CRASH. Continue reading "Weekly Stock Market Forecast"

Yield Curve Is Not Currently An Inflationist's Friend

The yield curve is flattening. I don’t cheer-lead a given view, but if I were to do that I’d be cheering for a yield curve flattener to put a correction to inflationist dogmatists quoting von Mises to the herds and otherwise sloganeering about inflation and a “commodity super cycle” (that term is pure promo).

Well, the curve is flattening.

Which means one of three things. Continue reading "Yield Curve Is Not Currently An Inflationist's Friend"

Tech Sell-Off Drags Market Lower

After a disappointing November jobs report, the stock market dropped on Friday as the market wrapped up a roller-coaster week driven by COVID Omicron variant concerns. The most significant sector hit was the tech sector, with the NASDAQ losing -1.92% to finish the day at 15,085.47. The DOW fell 59.71 points or -0.17% to close at 34,580.08, and the S&P 500 dropped -0.84% to end at 4,538.43.

Despite a 600 point rebound on Thursday, the DOW dropped -0.91% for the week marking four straight weeks of losses. The S&P 500 fell -1.22% for its second straight week of losses, and the NASDAQ capped off the week, losing -2.62%, marking its second straight week of losses. Continue reading "Tech Sell-Off Drags Market Lower"

What The New Bitcoin Upgrade Means To You

The latest Bitcoin update – called Taproot – has hit the streets. And no matter where you look, just about everyone involved with crypto and Bitcoin is abuzz about what this upgrade means for Bitcoin today and down the road.

So, today we’re going to take a behind-the-scenes look at what Taproot really is and what it means to investors. Then, we’ll kick the tires and see if it stacks up to all the hype.

What Is Taproot?

On November 14, the Bitcoin network activated the Taproot upgrade to Bitcoin’s software deployed around the network. The upgrade officially hit the block at block 709,632 and is the first major update since 2017. The upgrade should increase transaction privacy and efficiency. Continue reading "What The New Bitcoin Upgrade Means To You"

Should The Omicron Variant Be A Concern For Investors?

While Americans were celebrating the Thanksgiving Holiday, the rest of the world dealt with the newest Covid-19 variant. The Omicron variant of coronavirus, first identified in South Africa, has been reportedly spreading in parts of Europe for days before it was identified in southern Africa.

On December 1st, the first confirmed US case of Omicron coronavirus variant was detected in California. In a White House news briefing, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said the case was in an individual who traveled from South Africa on November 22 and tested positive for Covid-19 on November 29.

As of the end of November, the variant was already found in 20 countries, and governments around the world were already implementing lockdowns and travel restrictions.

These decisions where being driven by the fact that the Omicron variant was substantially different. With about 50 mutations from the original coronavirus, which started the pandemic, and about 30 mutations compared to even the highly contagious delta variant that has swept around the world. However, scientists don't know if the variant is actually more contagious or more deadly than any previous variants.

Many have been calling this an overaction, while others say the lockdowns and travel restrictions are adequate steps to protect others. Regardless these are difficult decisions for the politicians, and there will inevitably be those talking heads on the T.V. bashing the leaders regardless of their decisions. Part of this circus helps build fear and anxiety in most people, leading to fear and anxiety within the stock market.

The worst single day for the U.S. stock market in 2021 was Friday, November 25, the day following Thanksgiving, a shortened trading day, and of course, the day after the world found out about the new Omicron variant. The following few trading days were similarly volatile, with the market bouncing higher and then lower, despite any new real tangible information about the true nature and danger of the Omicron variant being known.

So, should this new variant be a real concern to investors? Continue reading "Should The Omicron Variant Be A Concern For Investors?"