- Fed Chair Yellen seems to be optimistic about the balance sheet cuts although the plan is nowhere near done or even actually happening. She explains that the fed will stop reinvesting their funds and instead let their portfolio securities mature, which consists of massive amounts of mortgage backed securities that are generating siginificant interest.
- The Russell continues to slow down in gains as the other major indexes (Dow, S&P, Nasdaq) move higher. This could be an indicator that small/mid cap companies are starting to slow down growth, generally as an economy reduces growth, the first ones to suffer are the smaller firms.
- OPEC agreed to an additional 9 months of production cuts meaning that a cut in supply will force the price of oil even higher. Oil was down today after investors sold their positions that they had purchased before the obvious OPEC announcement. The market increased as a consequence to cutting supply, which really isn't the healthiest source for growth.
- Jobless claims rise after two weeks of decline.
- Mnuchin asks congress to raise the U.S debt ceiling, as tax receipts are coming in slower than expected. Possibly signaling the fact that corporations and the rich are taking their sweet time to pay their taxes.
- As for crypto currencies, Bitcoin has grown past the $2,500 barrier, having increased over $500 since last Saturday. Such increases come after 56 involved companies and 83% of Bitcoin miners, businesses that operate computers to further secure the blockchain and add new transactions to it. supported the "Bitcoin Scaling Agreement". In general terms this is considered an upgrade that would increase Bitcoin's transaction capacity. Through the use of SegWit2MB, a combination of Segregated Witness (Soft Fork) and 2MB Block sizes (Hard Fork), bitcoin block sizes will be significantly increased. This news comes after months of dispute on which solution, hard fork or soft fork, would be used to increase general block capacity. Sergio Demian Lerner explained that this approach will be used in order to reunite the Bitcoin community and avoid a cryptocurrency split. Yet still many are considering Bitcoin's complex and unique transaction structure to be immutable.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.