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Stocks have been unable to make any headway over the past
few sessions. And late-day sell-offs have been a common theme.
I often refer to oil prices as a proxy for growth
expectations. And with oil prices set to drop below $72 a barrel today, it’s
clear that investors are not bullish on growth. Of course, recent economic
data has indicated that economic activity in the U.S. has slowed down.
Perhaps the biggest drag on the economy is housing. That’s
nothing new. But New and existing home sales have been weaker than expected
after the expiration of the homebuyer tax credit in April.
TradeMaster‘s Jason
Cimpl wasn’t taken by the current downturn
for stock prices. He’s been positioning his members in several inverse ETFs
to take advantage of falling stock prices since August 20.
If you don’t know, an inverse ETF is designed to rise in
value as the price of the stocks it tracks fall. TradeMaster
Daily Stock Alerts members hold 4
such ETFs, and needless to say, they’ve got profits on all of them.
I’ve said it before, but trading strategist Jason Cimpl has
an uncanny knack for keeping his readers positioned for the stock market’s
next move. If you’d like to start making short-term profits from the stock
market, I highly recommend TradeMaster
Daily Stock Alerts. Click
HERE for more.
In a case of
unanticipated consequences, the recent activity in the bond market is being
cited as a harbinger of economic weakness. Of course, one reason bonds have
rallied so spectacularly is the Fed’s recent move to roll profits from
mortgage backed securities into Treasury bonds in order to keep mortgage
rates low.
Rates are low, all right. 10-year yields are at their lowest
level since March of 2009. And lest you forget, stocks were making some
sickening lows in March 2009. The S&P 500 bottomed at 666 that month.
It would seem to me that there is more downside than upside
for bond prices right now. And there’s no doubt that any individuals and
corporations who are taking advantage of these low rates to refinance or
re-structure their debt are putting themselves in great position going
forward.
And of course, that assumes you can find a bank willing to
lend.
The recentrally for
bonds should be cause for concern at the Fed. And I maintain that the Fed
will step in and defend the stock market at some point. What will the Fed do?
Well, that’s a good question.
I asked Daily Profit readers for your
thoughts last week. Let’s get to some of those responses