Month: October 2014

Risk management has become a four letter word. It has been more than two years since the S&P 500 Index has suffered a correction greater than 10% in what has become the longest uptrend in the history of markets. Naturally, no one cares about risk management today as stocks have behaved like a risk-free asset […]

Anatomy of a Market Top

“If it keeps on rainin’, levee’s goin’ to break.” – Led Zeppelin Crashes get all the headlines, but the reality is that a breakdown in markets is more often a process than an event. It takes time to break the back of a strong uptrends as there are many buyers on the sidelines eager to […]

I know what you’re thinking. Is he really combining two different early 90’s movies into an article title? That’s pushing the limits of clickbait. Fair enough, but hear me out. It will hopefully make some sense by the end of this piece. In late May, I took you “Back in Time,” writing about the many […]

The Bear Who Cried Wolf

  • Markets
  • Charlie Bilello

“Dow closes at a record high, again” “Alibaba IPO Skyrockets After Initial Offering” “S&P at new high as dovish Fed maintains rates to stay low for a ‘considerable time’” These were the prominent headlines of two Fridays ago. They were all unmistakably positive, but lurking underneath the surface was a nagging divergence that I’ve been […]

The Calm Before the Storm

For thousands of years sailors have noticed a strange phenomenon of quiet and calm waters that can occur just before some of the most violent storms.  As a storm approaches, it pulls warm, moist air from the atmosphere around it, leaving a low pressure vacuum in its wake. This is the fuel that powers storms, with […]