Midweek Market Update – Jan 21st 2015
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Bob Loukas is the founder of The Financial Tap. With over 20 years of experience in market analysis and trading, Bob is a life-long student of economics and has an abiding passion for the financial markets.
He is a leading expert in Market Cycles. His love of Cycles emerged from the study of the work of Walter Bressert, a pioneer in the field.
Originally from Sydney, Australia, Bob has been settled in New York City for the past 16 years. His background is in Computer Sciences, with extensive experience in the Financial Software arena. Prior to launching The Financial Tap, Bob served as a senior executive at various Fortune 50 firms where he led development of financial trading and reporting software.
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In my opinion, it’s only going to be a matter of time before the current world-wide deflationary pull and economic weakness begins to directly impact the US economy. Considering the FED has tapered all QE programs, in an interconnected and dependent world, the US economy has not healed enough to withstand this weakness, let alone continue to “carry the world” on its back.
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This content is for members only
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What a crazy equity market this has become. The swings are just insane. I know in this business what’s “normal” is often tough to define, with the markets fully capable of a variety of wild but still-acceptable swings. Still, I have no qualms in calling the current market “irrational”. It’s a condition often found near major market lows and highs.
It was just two weeks ago that we witnessed the largest weekly selloff in over two years. That 5% decline occurred in a single week and sent the S&P tumbling below 2,000. What followed was a pair of 2% daily gains, packaged in a 3 day rally that added an amazing 100 points. This level of volatility and price fluctuation is indicative of a market controlled by speculative forces. Equities have been divorced from fundamentals for at least 3 years, leaving the market at the mercy of speculative actors: under-performing funds, speculative traders, hedge funds, and programmed bots designed to perpetuate the trend for as long as possible.
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