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Stocks Power Higher

Daily Rap 05-24-2021

The market was rocking and rolling to the upside, led by the Nasdaq, which gained 1.5% through midday with momentum tech favorites all doing well beneath the surface. In the afternoon, the indices gave back just a small chunk of the rally, finishing near the high of the day.

Away from stocks, green paper was weaker and fixed income was stronger, as were the metals, with silver gaining 1% and gold a couple of dollars. The miners were a touch higher as well.

Ignorance Is Bliss There was a tremendous amount of weakness in the crypto market over the weekend, but that didn't matter as Bitcoin rallied today. I only bring that up because it's constantly getting so much news. One point that I've made many times already is that for all the chatter about the...more

Last year's posts for Ask Fleck

Q: "The Philadelphia Fed reports:
Price increases were more widespread this month for the firms’ inputs and own goods. The prices paid diffusion index increased 8 points to 76.8, its highest reading since March 1980. Nearly 77 percent of the firms reported increases in input prices, while none reported decreases. The current prices received index increased 7 points to 41.0, its highest reading since May 1981.”
- WSJ 5-20-21

Survey responses were collected from May 10 to May 17.

Fleck: Gonna be a lot of those sorts of stories.
(posted: 5/21/2021)

Q: The other day you mentioned shorting small treasuries (tyn I believe), are you still short them?

Fleck: Yes, and I increased it a bit.
(posted: 5/21/2021)

Q: The scars of the 2013 taper tantrum were all over the sentence in the Fed minutes. The upper case is mine. "A number of participants suggested that IF the economy continued to make rapid progress toward the Committee's goals, it MIGHT be appropriate AT SOME POINT in upcoming meetings to BEGIN DISCUSSINS a plan for adjusting the pace of asset purchases." Give a gold metal to the wordsmith of that. As the economic studies of the benefits of QE don't point to any real impact on anything other than asset prices (most of the money ends back at the Fed as reserves and there is no link to bank lending growth) and debt monetization, we are seeing AGAIN evidence that markets still have the Fed wrapped around its fingers. While there is no question this goes back to Greenspan, the 2013 Fed experience was the moment that Bernanke and Powell (a Governor at the time) realized "when you find your servant is your master." The Police - Wrapped Around Your Finger

Fleck: Well stated by Peter Boockvar, thanks.
(posted: 5/21/2021)

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The bottom's in...