Thursday, March 13, 2025

The Morning Call---Excellent reasons to both buy and sell

 

The Morning Call

 

3/13/25

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/market-recaps/bond-yields-big-tech-bullion-black-gold-bounce-consumer-prices-canada-calm-nerves-bit

 

            Bottom not yet in.

            https://www.zerohedge.com/markets/trading-changing-macro-landscape-goldman-explains-why-us-bottom-not-yet

           

            Are we there yet?

            https://www.zerohedge.com/markets/jpm-position-intel-hedge-funds-and-ctas-much-move-could-be-over

 

            Excellent reasons to both buy and sell.

            https://www.zerohedge.com/the-market-ear/equally-fine-arguments-both-sides

 

            Another breakout imminent in gold?

            https://www.zerohedge.com/the-market-ear/gold-consolidate-break-out-repeat-next-surge-imminent

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

           

                          Weekly initial jobless claims totaled 220,000 versus estimates of 225,000.

 

February PPI was flat with January versus expectations of up 0.3%; core PPI was down 0.1% versus +0.3%.

                          https://www.zerohedge.com/political/core-producer-prices-tumbled-most-covid-lockdowns-february

 

                        International

 

                          January EU industrial production was up 0.8% versus consensus of +0.6%.

 

                        Other

 

                          Inside the CPI index.

                          https://www.advisorperspectives.com/dshort/updates/2025/03/12/inside-the-consumer-price-index-february-2025

 

                          More analysis of yesterday's CPI number.

                          https://bonddad.blogspot.com/2025/03/february-cpi-very-good-report-with-even.html

 

            Overnight News

 

Senate Republicans are planning tax reductions that go well beyond an extension   of President Trump’s expiring tax cuts. On the menu: Reviving lapsed business tax breaks, expanding the child tax credit, loosening the cap on the state and local tax deduction and incorporating Trump’s ideas for eliminating taxes on tips, overtime and Social Security benefits, said Finance Committee Chairman Mike Crapo (R., Idaho), who ticked through a list of ideas Wednesday that could easily top $5 trillion or more over a decade.

 

On the back of Trump’s Yale CEO caucus meeting Tuesday, while CEOs have largely been quiet, they affirmed that things would have to get significantly worse to publicly criticize the President. Asked how much the stock market would need to decline for them to speak out collectively, 44% said it would have to fall 20%. Another 22% said stocks would have to fall 30% before they would take a stand.

 

US Treasury Secretary Bessent spoke with congressional leaders about making Trump tax cuts permanent and said that is what they will deliver.

 

 

            Monetary Policy

 

              Treasuries pricing in higher odds of a rate cut.

              https://www.capitalspectator.com/treasury-market-pricing-in-higher-odds-for-rate-cuts/#more-23686

 

              Bank of Canada cuts rates.

              https://talkmarkets.com/content/global-markets/bank-of-canada-cuts-again-but-easing-may-slow-from-here?post=486471

 

            Fiscal Policy

 

              Senate refuses to pass budget continuing resolution.

              https://www.zerohedge.com/political/blocks-path-schumer-and-schiff-schitt-shower-over-shutdown-friday-deadline-looms

 

              The February budget deficit was $307 billion versus forecasts of -$303 billion.

              https://www.zerohedge.com/markets/us-deficit-hits-record-11-trillion-first-5-months-2025-february-taxes-fail-cover-even-half

 

            Recession

 

              The latest from Jeffrey Gundlach (there is an obvious misprint on timing).

              Jeffrey Gundlach Says U.S. Now Has A 60% Chance Of Recession

 

              Ed Yardini joins Jeff, raising his odds of recession.

              The Trump Put Is Kaput!

 

            Tariffs

 

This is a different take: the real problem with tariffs is that they are not high enough.

https://edgyoptimist.substack.com/p/the-real-problem-with-tariffs?utm_source=post-email-title&publication_id=2450694&post_id=158843091&utm_campaign=email-post-title&isFreemail=true&r=67wdy&triedRedirect=true&utm_medium=email

 

              The Mar-a-Lago accords.

              https://www.apolloacademy.com/what-is-the-mar-a-lago-accord/

 

              Canada strikes back.

              https://townhall.com/tipsheet/jeff-charles/2025/03/12/canada-strikes-back-at-united-states-with-new-tariff-n2653678

 

              So does the EU.

              https://www.wsj.com/economy/trade/trump-tariffs-steel-no-exemptions-6ed95f5b?mod=economy_lead_story

 

              As usual congress abrogates its duties.

              https://www.nationalreview.com/corner/house-republicans-block-proposal-for-congressional-vote-on-trumps-tariff-emergency/

 

              Bill Dudley: tariffs will be worse for the economy than the Markets think.

              https://www.bloomberg.com/opinion/articles/2025-03-12/trump-s-tariffs-will-be-worse-than-markets-think?srnd=homepage-americas&sref=loFkkPMQ

 

     Investing

 

            An interview with Kevin Duffy.

            https://themarket.ch/interview/kevin-duffy-i-think-the-markets-are-heading-for-trouble-ld.13363

 

            Resist the urge to buy the dips.

            https://talkmarkets.com/content/stocks--equities/djia-avoid-the-urge-to-buy-the-dip?post=486357

 

            Certainty is now a scare resource.

            https://www.ft.com/content/c4c3eb94-494b-4009-87b0-5a75c1d642e5

 

            Mind the anxiety gap.

            https://tonyisola.com/2025/03/mind-the-anxiety-gap/

 

            The future is no longer science fiction.

https://www.riskhedge.com/outplacement/the-future-is-no-longer-science-fiction/rcm?utm_campaign=RH-144&utm_content=RH144OP751&utm_medium=ED&utm_source=rcm

 

                        Bitcoin---selling the news.

            https://www.advisorperspectives.com/commentaries/2025/03/12/bitcoin-slump-myopic-could-bring-opportunity-expert

 

    News on Stocks in Our Portfolios

 

What I am reading today

           

 

 

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