The S&P 500 traced an outside reversal pattern to the downside yesterday.  The last instance of such an event occurred on August 1 which preceded a near 16% drop in the blue chip index just six trading sessions later.  I suppose this does not instill any confidence in investors going into Ben Bernanke’s highly anticipated Jackson Hole speech, but I will assuage those fearful of another leg down in equities by arguing that the fundamentals will always trump the technicals if the former has enough direct influence on the broader market.  Certainly, this morning’s speech qualifies as such an externality.

I am not predicting that whatever spews from the Chairman’s mouth will send stocks soaring, for current mainstream consensus has forecasted a likely sell off.  Perhaps, traders already booked Continue reading »

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Managing two travel soccer teams, I hate this time of year as I have to register 30 players and four coaches for the upcoming season, a process that usually takes about 15 hours.  Sitting at my kitchen table yesterday afternoon, I paused for a moment as the Earth rumbled and my house swayed back and forth.  After living in Northern California for eight years, I acknowledged what was happening, shrugged my shoulders, and then cursed the parent of our left fullback who forgot to supply me her daughter’s birth certificate.

I suppose I did hearken back to the 7.1 Loma Prieta quake from 1989 which timed perfectly with my daily late afternoon bathroom trip Continue reading »

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When stepping away from the markets for nearly a week, I find my return akin to drinking from a fire hose as I try to slurp a cascade of data that have rained down during my absence.  Playing catch up can be daunting although recognizing a near 6% drop in the S&P 500 over the past two sessions is obvious.  So too is reviewing the economic numbers as well as digesting market moving news such as The Wall Street Journal’s reporting that the New York Fed has started to question overnight funding from large European banks with significant operations in the U.S.  As always, I will attempt to find the rare nuggets of information Continue reading »

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