What would a contrarian do?

In Free by Cam Hui

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The “Ultimate Market Timing Model” is a long-term market timing model based on the research outlined in our post, Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The Trend Model is an asset …

In search of the elusive inflation surge

In Free by Cam Hui

US bond yields began to settle down last week when Fed Chair Janet Yellen stated in her Congressional testimony that the neutral rate for Fed Funds is roughly the inflation rate, which is much lower than market expectations. In addition, she allowed that the Fed is likely to re-evaluate its tightening path in light of tame inflation figures. Even Fed …

More evidence of an emerging reflationary rebound

In Free by Cam Hui

Mid-week market update: Further to my last post (see Nearing the terminal phase of this equity bull), There are numerous signs that the market’s animal spirits are getting set for a reflationary stock market rally. First of all, the BAML Fund Manager Survey shows that a predominant majority of institutional managers believe that we are in the late cycle phase of …

(Chinese) blood in the streets?

In Free by Cam Hui

The worries about China ebbs and flows. The latest BAML Fund Manager Survey shows that China fears are at flood levels again.     Indeed, developments such as the inverted Chinese yield curve is creating a sense of peak anxiety.     I recently highlighted analysis indicating that China fears are overblown (see Are the Fed and PBoC taking away …

What’s next for gold?

In Free by Cam Hui

Mid-week market update: My recent sector review was well received, especially when it was framed in the context of how a market cycle rotation works (see In the 3rd inning of a market cycle advance). As I don’t have much to update about the technical condition of the stock market, especially in light of the non-reaction to the FOMC meeting. …

Tactically taking profits in the commodity and reflation trade

In Free by Cam Hui

Mid-week market update: Regular readers know that I have been bullish on the commodity and reflation trade (see A possible generational low in oil and energy stocks and The road to a 2016 market top). On the weekend, I postulated three separate short-term scenarios for the stock market  (see *Sigh* Another growth scare): The growth scare recedes and the market ...
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Will an oil spike kill the market bull?

In Free by Cam Hui

I recently wrote about my scenario for a market top in 2016 (see My roadmap for 2016 and beyond), which goes something like this: Unemployment is now at 5.0%, which is a point at which the economy historically started to experience cost-push inflation. Inflation edges up, which is already being seen in commodity prices. Initially, the Fed is content to …