Author: Money Mechanics

is approaching a critical inflection point as price consolidates just above the dual daily and weekly VC PMI pivots ($3398–$3400). This level is acting as a gravitational “mean reversion magnet,” where institutional flows balance out. The ability to sustain closes above this zone signals that the market is shifting from rebalancing to accumulation, positioning itself for a potential breakout toward the higher Sell 1 ($3440–$3444) and Sell 2 ($3462–$3468) targets. The narrow alignment of daily and weekly resistance reinforces these levels as powerful reversal or profit-taking zones, likely requiring strong momentum to penetrate decisively. The 30-day Gann cycle suggests that…

This article continues the discussion of “why would anyone want to impose tariffs” that was started in this article. The first article discussed a non-standard justification: tariffs as a source of revenue.The standard justification for tariffs is to better control the development of your domestic economy (and/or to reduce the influence of perfidious foreigners). Although I have limited sympathies for this concept — Canada pursued a policy of developing behind a tariff wall — it is a somewhat dated tool (as I discuss below).Free Market Orthodoxy: Tariffs BadBeing against tariffs is a now ancient stance for mainstream economics, going back…

There’s capturing attention and then there’s keeping it. Whether American Eagle Outfitters (AEO), which not long ago managed the former, can do the latter, is the question facing investors today. So far, it has. A pre-earnings bump helped the retailer’s shares finish May 13 at $12.55 a share—before the company pulled its outlook, sending the stock lower. Later that month it posted a larger-than-expected quarterly loss; the stock finished May a bit below $11. But it’s since climbed its way back, ending Friday at $12.85. It got there in part thanks to a marketing campaign featuring actress Sydney Sweeney that…

Anthony Scaramucci, the founder and CEO of SkyBridge Capital, expressed his support for Bitcoin BTC/USD, drawing on a famous line from William Shakespeare’s play “Romeo and Juliet.”Scaramucci’s Poetic EndorsementIn an X post, Scaramucci wrote, “It is the east, and Bitcoin is the sun,” referencing the “It is the east, and Juliet is the sun” line from the legendary play.This poetic endorsement was in response to venture capitalist Tim Draper’s comments on CNBC, where he predicted Bitcoin’s dominance over other altcoins.“There are other currencies that will come up as flashes in the pan. But I think overall, we’ve got a major trend towards Bitcoin,” Draper…

The difference between mortgage rates and the 10-year treasury yield has narrowed, signaling a potential boost for homebuyers. A decrease in the mortgage spread can cause mortgage rates to fall, even without the Fed cutting interest rates.  The gap between 10-year treasury yields and mortgage rates (known as the mortgage spread) has dropped to its lowest level in over three years, allowing mortgage rates to fall more than treasury yields. The spread was 2.26 percentage points as of August 22, down from about 2.5 at the start of summer and 2.68 a year earlier. That’s good news for house hunters…

Months before a jury awarded a $242.5 million verdict against Tesla over its culpability in a 2019 fatal crash, the automaker had a chance to settle for $60 million. Instead, Tesla rejected that offer, according to new legal filings that were first reported by Reuters. The settlement proposal, which was made in May, was disclosed in a filing that requested Tesla cover legal fees for the plaintiffs in the case. Earlier this month, a jury in federal court in Miami found Tesla partly to blame for a fatal 2019 crash that involved the use of the company’s Autopilot driver assistance…

Is it better to make after-tax Roth 401(k) contributions or save before-tax in a traditional 401(k)? getty Is it better to make after-tax Roth 401(k) contributions or save before-tax in a traditional 401(k)? The answer varies depending on the taxpayer. While individuals with higher incomes might not benefit as much from after-tax contributions during their working years, the decision isn’t always straightforward. Here’s when to consider pre-tax vs Roth 401(k) contributions. What’s The Difference Between a Traditional and Roth 401(k)? Both pre-tax and Roth accounts grow tax-deferred, but beyond that, there are several differences. Traditional 401(k) Contributions reduce your regular…

Key Takeaways President Donald Trump says he’s looking to make more deals like the one he announced last week with Intel. The deal has been generally seen as positive for Intel, though some Wall Street analysts warned a similar arrangement might have less appeal for companies on more solid footing.The Trump administration said Friday it would not seek equity in some other CHIPS Act recipients like TSMC. President Donald Trump says he’s looking to make more deals like the one he announced last week with Intel (INTC), with the government taking a 10% stake in the chipmaker Friday.  “I will…

President Donald Trump said he has removed Federal Reserve Governor Lisa Cook from her position, intensifying his aggressive stance toward the central bank. “You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote in a letter to Cook he posted Monday evening on Truth Social. The president had previously called on Cook, whose term is set to end in 2028, to resign. Trump in the letter repeated allegations of mortgage fraud against Cook that had been leveled earlier this month by his administration. The Federal Reserve did not provide a…

The Consumer Financial Protection Bureau (CFPB) is taking a crucial step towards implementing rules for open banking in the United States. We are now publishing the first application for public comment from an organization seeking recognition as an open banking standard-setter. We invite public comments on this application.Role of Standard-Setters and Key AttributesStandard-setters can develop standards that will help ensure a safe, secure, reliable and competitive open banking framework. In June 2024, the CFPB finalized a rule outlining five key qualifications for becoming a recognized standard-setting body in connection with the CFPB’s forthcoming final Personal Financial Data Rights rule:Openness: The…