NIFE News and Press, Direxion Fallen Knives From 09/08/22

Summary Total nonfarm payroll employment increased by 315,000 in August 2022 to a seasonally adjusted level of 152,744,000. Starting with the Age 16-17 portion of the teen workforce, the number of working teens reversed a three-month downtrend, jumping from 179,000 to 2,255,000. ...

Summary Global economic output contracted in August for the first time since June 2020, according to the latest PMI survey data. For the first time since early 2020, all four largest developed economies reported falling output. Reduced input cost inflation and worsening demand...

Summary Jackson Hole reset expectations to focus more on inflation. The U.S. dollar should stabilize over the medium-term amid hawkishness from other central banks and slowing economic data. At stake is Europe’s ability to refill their storage tanks ahead of winter. ...

Summary Russia shut down its Nord Stream 1 natural gas pipeline last Wednesday for “maintenance” and will thereby provide Europe with a preview of how it must learn to cope without any new Russian natural gas coming in. Regardless of where Europe gets its natural gas...

Summary The Fed has made abundantly clear that it will tighten monetary policy until inflation is virtually vanquished. And yet, those who have no choice but to be nearly fully invested at all times have completely ignored this fact and were left trying to convince the investing p...

Summary With the Fed draining $95 billion in liquidity from the banking system as it accelerates QT, things could go from bad to worse, although bearish sentiment is increasing and the market is getting very oversold. There are still areas of the market that are worth considering,...

Summary The August US Services Purchasing Managers' Index conducted by S&P Global came in at 43.7%, down from the final July estimate of 47.3 and in contraction territory. August saw the US economy slide into a steepening downturn, underscoring the rising risk of a deepening r...

Summary You have good reason to be concerned about a recession. The yield curve remains inverted, and GDP contracted for two consecutive quarters. Here I want to urge investors to understand the limitations of these popular signals before taking action. After all, what gets us...

Summary With the Fed hiking rates, high inflation, and slower economic growth pending, a continuation of that earnings decline remains highly probable. The earnings surge in 2021 is something never witnessed previously and must eventually revert to norms. The most significant ...

Summary Business activity has a reliable cycle. Outlandish stimulus in 2020 has made the economic system unstable. The Fed is now draining liquidity, causing the markets to become more volatile. In January 2021 I published "Market And Earning Cycles Point To A Pa...