Monday, July 27, 2020

The Morning Call---Gold soaring

The Morning Call


The Market

The Averages  (26584, 3239) recouped some of the decline of last Thursday and Friday.  The S&P finished back above its June high; the Dow not.  Volume was flat, breadth improved.  So, it was a ho hum day, technically speaking.  But I am sticking with my assumption that the Market’s bias is to the upside.

Gold spiked 2% on big volume, making another new nine year high.  The long bond was down fractionally, but there was no break in its upward momentum.  The dollar gapped down ¾%.  The pin action in both GLD and UUP suggested that they were getting directionally overextended.  Some backing and filling would not be surprising.

            Gold hitting new highs.

            Gold’s message: the world economy is in trouble.

            What dollar collapse?


            Monday in the charts.



              The Economy

The July Dallas Fed manufacturing index was reported at -3 versus   forecasts  of -16.


                          Declining confidence macroeconomic management.

                          Update on high frequency indicators of the economy.

            The Fed

              Deutschebank projects Fed balance sheet will hit $20 trillion soon.


             US/China trade war heating up.

            Bottom line.   Have equities become a bubble.

    News on Stocks in Our Portfolios

What I am reading today

            The ‘super weird’ moons of Mars.

            America’s major cities are being turned into war zones.

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