Can High Yield Bonds Bolster U.S. Equities?

By James Dondero | October 19, 2015 Stocks had another decent week and continued their advance off their October lows. Stocks continue to face significant areas of resistance just overhead…

A Possible Short-Term Bottom for Stocks, However Credit Continues to Loom

By James Dondero | October 2, 2015 Stocks finally had a good week, as both the S&P 500 and NASDAQ held their August 24th lows. Even more important is that both exchanges…

The Fed Stands Pat

By James Dondero | September 21, 2015 Markets were quite volatile last week, with stocks reacting negatively to the Fed’s decision to keep interest rates unchanged. While the FOMC did…

Markets Await Federal Reserve Decision

By James Dondero | September 14, 2015 US stocks finally had a quiet week, ahead of one of the most widely anticipated FOMC meetings ever. While the broad market averages…

Bottoming is a “Process,” not an “Event”

By James Dondero | September 08, 2015 US stocks finished the week lower, unable to build on their rally off the Aug 24th lows. Stepping back, while stocks could be…

Testing… Testing

By James Dondero | August 31, 2015 US Stocks had another extremely volatile week, and August 2015 will be remembered as one of the worst to investors in many years. More…

Once again… Credit was right!

By James Dondero | August 24, 2015 US Stocks had a very rough week, suffering their biggest declines since their 2011 lows. Technically speaking, stocks have now decisively broken key areas…

Will Credit Lead Equities?

By Jim Dondero | August 17, 2015 Stocks were up nicely last week, with the broad market averages advancing nearly 1%. More importantly, the bulls successfully defended key areas of support such…

Where the Rubber Meets the Road!

By Jim Dondero | August 7, 2015 US stocks finished in the red last week, being led lower by the small caps. While the tone of the tape was clearly “defensive,” the…

Are US Market Internals Cause for Concern?

By Jim Dondero | August 3, 2015 US stocks moved slightly higher last week but still remain within their extremely narrow trading range. Market internals continue to flash a “yellow light” based…

The People’s Republic, US Earnings Reports and Commodity Concerns

By Jim Dondero | July 27, 2015 Chinese markets continued to dominate the news last week, as well as drive markets globally. While it remains to be seen whether the government’s…

Is the Tape Getting Bullish?

By James Dondero | July 20, 2015 Stocks were smartly higher last week with both the tech and financial sectors demonstrating strong leadership. The NASDAQ-100 Index for example, clearly broke…

Don’t Lose Sight of China amidst the Current Greek Drama

By Jim Dondero | July 13, 2015 The drama in Greece continued to dominate headlines last week, naturally weighing on the markets. The real volatility however continues to be in China…

Headlines Move Markets

By James Dondero | July 1, 2015 Markets around the world are again becoming dominated by news headlines, most notably those out of Greece and the Supreme Court’s ruling regarding…

Equities Looking for a Breakout

By Jim Dondero | June 19, 2015 Commodities remain weak, with several sub-sectors verging on breaking support this week. Feeder Cattle have been the exception, which have advanced nearly 20% since…

Will Interest Rates Rise?

By Jim Dondero | June 12, 2015 Last week the US dollar continued to range trade with the Euro likely setting up its own range over the intermediate term. The Yen…

The Weakness in Bonds Continues

By Jim Dondero | June 5, 2015 The big news last week was the continued weakness in the bond market, which pushed yields on the benchmark 10-yr US Treasury to a…

A Theme of Deflation

By James Dondero | May 26, 2015 The theme of deflation reasserted itself last week, with the dollar bouncing and commodities moving lower. The Yen and Euro moved lower as well, all…

Testing… Testing…

By James Dondero | May 20, 2015 Markets continue to back and fill this week, with crude a classic example. Specifically, after moving through $58/barrel oil is now back testing its breakout….

Crude Sets a Meaningful Bottom

By James Dondero | May 15, 2015 For the week, the dollar looks to be consolidating and will likely continue to range trade. Crude’s recent move through $58 along with its 20-wk…

Brake Lights Ahead?

By James Dondero | May 4, 2015 Stocks again struggled to make headway last week, with the S&P 500 and NASDAQ unable to move beyond their Feb highs. We believe this…

Possible Breakouts at Hand!

By Jim Dondero | April 23, 2015 Among the bigger developments this week has been the continued strength in crude oil, which is close to breaking through the key $58/barrel level….

Pullback in the DAX = Possible Buying Opportunity

By Jim Dondero | April 16, 2015 Crude oil has been quite strong this week, and is very close to breaking through the key $57/barrel area. Should it, a meaningful bottom…

U.S. Equities Address a Strong Dollar while Overseas Markets Strengthen

By James Dondero | April 10, 2015 While all has been quiet with the US Dollar recently, it appears to us as if the greenback may be poised to test the…

As Yields Move Lower, MLPs May Offer an Attractive Return

By James Dondero | April 02, 2015 The US Dollar was again slightly lower on the week, which again helped crude oil bounce. While the greenback is likely in a multi-year…

The Uptrend in US Stocks Looks Sustainable

By Jim Dondero | March 05, 2015 The big story last week is that the US Dollar closed meaningfully lower for the first time since Dec’14. We believe the dollar may…

Headed for a test?

By James Dondero | March 05, 2015 The US dollar again moved higher last week, strength we believe will continue given the greenback has emerged from a multi-year trading range. Looking…

Confirmation on the Breakout

By James Dondero | February 26, 2015 Stocks remain strong, with indices such as the Value Line and Russell 2,000 Small Cap Index now confirming last week’s breakout in the…

Risk-On for Equities!

By Jim Dondero | February 19, 2015 The big news this week is that US stocks have ‘broken out’ of their recent trading ranges to the upside. The consumer discretionary and…

A Crowded US Dollar and a Possible Slowdown for the DAX

By James Dondero | February 13, 2015 While a big winner the past several months, we continue to believe the US Dollar is a ‘crowded’ trade, and that further consolidation may…

A Possible Upside Breakout for US Equities and Midstream MLPs

By James Dondero | February 5, 2015 While we still believe that deflation is likely to be the dominant theme for 2015, the downtrend in crude oil appears to be reaching…

A Possible Opportunity in Oil as Yields Search for a Bottom

By Jim Dondero | February 2, 2015 While we continue to see deflation as the dominant theme for 2015, we also see a short-term countertrend opportunity for crude oil which…

30-Year Yields Break 2008 Support Levels and the DAX Continues its Upward Trend

By James Dondero | January 23, 2015 While deflation and a strong US Dollar remain longer-term market trends, we continue to believe oil could be near a short term bounce….

Oil Searches for a Bottom, Utilities Offer a Possible Upside and Overseas Markets Test Key Support

By Jim Dondero | January 9, 2015 While concerns around deflation continue to dominate market headlines, oil may finally be near a short term bottom, supporting our belief that an…

The Tape Remains Split, Commodities May Bounce and Overseas Markets Continue to be a Risk.

By James Dondero | January 5, 2015 Deflation remains the dominant theme for 2015 with the agricultural sector now joining crude, copper and precious metals in breaking support. That being…

An Opportunity in Healthcare, the Downtrend in Commodities Continues and Bulls Look to Bolster Equities

By James Dondero | December 29, 2014 Despite the potential for a short-term bounce in oil, we believe deflation may well be the dominate trend for 2015. Copper appears to…

AAL Undervalued, Dollar Slides and Bonds Suggest Deflation

By Jim Dondero | December 12, 2014 As oil continues its slide, the strength of the dollar did not show a countertrend correlation, falling three percent versus the yen. With the…

Oil Looks to Bounce, Argentine Bond Decision Looms and Market Breadth Should Improve

By James Dondero | December 5, 2014 We believe that a possible stall in the dollar’s rise could lead to a short term bounce for currencies such as the Euro…

A Strong Dollar, Weakness in Commodities and A Christmas Rally

By Jim Dondero | December 3, 2014 We continue believe the US Dollar will remain strong into 2015, and that commodities will remain in down trends. That being said, the…

Rising Greenbacks, Lower Treasury Yields and Emerging Markets

By James Dondero | November 18, 2014 • We believe that higher relative interest rates in the US will continue to attract investment flows. Hence, while the U.S. Dollar may be extended…