The Morning Call
8/13/18
The
Market
Technical
It
looked like the S&P was going to challenge its all-time high, then Turkey
spoiled the party. Technically, it remains
very strong and, historically, gaps (Friday’s pin action) are almost always
closed.
Early
in the week, the long bond was making another attempt to challenge the lower boundary
of its long term uptrend (interest rates going up); but the financial crisis in
Turkey turned TLT into a safety trade.
The primary question for TLT, will Turkey’s problem blossom into
something much bigger (keeping it in an uptrend) or will normalcy return (returning
investor focus to the US economy and Fed monetary policy).
The
dollar remains very strong. That said,
the spike up on Thursday and Friday had more to do with the currency crisis in
Turkey (safety trade).
You
would think that on a major risk off day that GLD could manage at least a minor
gain. Not so. No safety trade here.
The
VIX couldn’t confirm Tuesday’s break.
That suggests that a further advance will be labored.
Fundamental
Headlines
The
latest from Turkey (medium):
News on Stocks in Our Portfolios
VF Corp.
(NYSE:VFC) announces plans to separate into two
independent, publicly traded companies:: VF Corp., a global apparel and
footwear powerhouse, and a yet-to-be named company that will hold VF's Jeans
and VF Outlet businesses.
VF expects to create the
companies through a tax-free spinoff of the yet-to-be-named company to its
shareholders.
VF targets the separation,
which confirms a Friday WSJ report, for completion in H1 2019.
Economics
This Week’s Data
US
International
Other
Credit
problems in China (medium):
What
I am reading today
Stock buybacks are not
the cause of income inequality (medium):
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