Author Archives: Brian Johnson

About Brian Johnson

I have been an investment professional for over 30 years. I worked as a fixed income portfolio manager, personally managing over $13 billion in assets for institutional clients. I was also the President of a financial consulting and software development firm, developing artificial intelligence based forecasting and risk management systems for institutional investment managers. I am now a full-time proprietary trader in options, futures, stocks, and ETFs using both algorithmic and discretionary trading strategies. In addition to my professional investment experience, I designed and taught courses in financial derivatives for both MBA and undergraduate business programs on a part-time basis for a number of years. I have also written four books on options and derivative strategies.

Global Manufacturing PMI Points to Worldwide Recession

No country’s economy is an island.  Even the US economy, which accounts for 28% of global GDP, is heavily dependent on other countries.  Foreign sales as a percentage of total sales for S&P 500 companies are approaching 50%.  As a … Continue reading

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Jobs Report: Good News and Bad News

The market was clearly thrilled with the +163K non-farm payroll (NFP) number on Friday morning.  Equity markets were up worldwide, as were most commodities.  The NFP number was much better than the consensus estimate of +100K, although the estimate of … Continue reading

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Vote of No Confidence for Draghi

After Mario Draghi’s impassioned guarantee to do “whatever it takes to save the euro,” equity markets around the globe initially rose in eager anticipation of the breathtaking new plan to rescue the troubled European sovereign debt markets. Unfortunately, today’s announcement … Continue reading

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Market Timing with Relative Strength Revisited

Two months ago in an article titled “Use Relative Strength to Identify Market Trends,” I explained how to use the relative strength of two different indices, futures contracts, or ETFs to identify market trends.   This is one of my … Continue reading

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Posted in In-Depth Article, Market Commentary, Market Timing, Relative Strength, Strategy Development, Technical Analysis | Tagged , , , , | 6 Comments

Prices and Earnings Diverge

According to FactSet, since June 1, the price of the S&P 500 index has increased by 6.4%, while the year-over-year earnings growth rate for Q3 has declined from +3.5% to -1.6%.  In other words, while analysts were reducing their earnings … Continue reading

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Yields Soar in Italy and Spain

Borrowing costs in Italy and Spain continue to be reliable barometers for the status of the European Debt Crisis.  If Italy and Spain lose access to the credit markets, the house of cards would finally come tumbling down.  As I … Continue reading

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Housing Starts Only Bright Spot This Week

Housing starts were the only bright spot in another dismal week of economic data in the U.S. The following post provides an overview of the major economic releases from this week as well as an update on market conditions, including … Continue reading

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ECRI: “We’re in a Recession”

In a recent interview for Bloomberg, Lakshman Achuthan, the co-founder and COO of the Economic Cycle Research Institute (ECRI), the world’s leading authority on business cycles, asserts that “we’re in a recession.” A video of the interview is available on … Continue reading

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