This is the video recording of the January 28th Town Hall Meeting w/ Willie Delwiche & JC Parets.
01/28/21 2PM ET [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
This is the video recording of the January 28th Town Hall Meeting w/ Willie Delwiche & JC Parets.
01/28/21 2PM ET [Read more…]
by Willie
Years ago, early in our marriage, my wife and I went to a car dealership with her dad to make one of those all important, young couple purchases: a new car.
While my wife and her father were chatting with the salesman, I was all over the car pushing every button, pulling every lever and opening every compartment. I wanted to know what was what, where things were, and how it all fit together. The three of them were a bit taken aback as I moved from the front seat to the back, methodically finding knobs and uncovering compartments that the salesman didn’t even know existed.
Our marriage survived that episode and I’ve got a great relationship with my father-in-law but we didn’t buy the car.
I am a tinkerer by nature. My dad once rebuilt a motorcycle engine in the living room of the small apartment he shared with my mom shortly after they were married. The point is, I like to know how things work. I’m not afraid to pull something apart, look at the insides, and then put it back together. I always use all the screws and only rarely does a spring or ball bearing go missing.
So when it comes to the markets, I’m also interested in pulling indexes apart and looking at trends among and across various components.
Here is a behind-the-scenes look at my process:
by Willie
It’s late-January. We’ve rung in the New Year. Christmas decorations are put away. We’re settling into the late winter slog of cold & snow.
In my reading on this morning (a cold & snowy one in Milwaukee), I came across the following passage:
“You see, Rodya, to make a career in the world , it’s enough, in my opinion, if you always observe the season; don’t ask for asparagus in January, and you’ll have a few more bills in your purse; the same goes for this purchase. The season now is summer, so I made a summer purchase. . .”
It’s from “Crime and Punishment” by Dostoevsky. Since it’s a Russian novel, explaining exactly who is talking, who is being spoken to, and the overall context would take too much time. But I’m quite sure that we can look at what is being said on its own and glean some wisdom.
by Willie
It’s not a new chart – in fact it makes the rounds on a fairly regular basis.
The iteration I saw this week showed the relationship between global money supply, stocks and high yield bonds over the past five years. The trend for all three was the same – up and to the right, with early 2021 bring a fresh round of new highs.
For whatever reason, my first thought on seeing this version was that Wu-Tang Clan had it right all along.
by JC
In case you missed it this week, our team just got a whole lot better. Willie Delwiche is officially part of the Allstarcharts Team. We couldn’t be more excited to have someone with his experience adding to the conversations we’re already having every day.
To no surprise to any of us, Willie is already hitting the ground running with some excellent perspective on current market sentiment, valuations and breadth.
Here’s what he had to say today,
Stocks are historically expensive, but this is offset by ample liquidity being provided via monetary policy (and to a lesser extent the hope of additional fiscal stimulus). Investor sentiment is heavily tilted toward optimism and complacency. This becomes a more acute concern when market momentum is faltering and/or rally participation is narrowing. That is not currently the case, as an increasing number of markets have broken out of bear markets that stretch back to 2018 or earlier”