The Morning Call
7/24/20
The
Market
Technical
The Averages (26652, 3235) retreated yesterday. The S&P finished back on its June high
while the Dow fell back after just filling its ‘island top’ gap. Volume was flat,
breadth was weak and the VIX bounced off its June low. So, it was a technically disappointing
day. But I am sticking with my
assumption that the Market’s bias is to the upside.
Gold was up another
7/8% on big volume, making another new nine year high. The long bond was also up (1 ½%), keeping its
upward momentum going. The dollar declined. All this suggests a weak economy.
Treasuries poised
to test new lows.
Gold has only one
resistance point left.
Thursday in the
charts.
Fundamental
Headlines
The
Economy
US
June leading economic
indicators were up 2.0% versus expectations of +2.1%
The July Kansas
City Fed manufacturing index came in at 7 versus estimates of 5.
International
July EU consumer confidence was reported at
-15 versus forecasts of -12.
Other
High frequency indicators
point to late June slowdown.
The feared jumbo mortgage debacle is here.
South Korea falls into recession.
The
Fed
The Fed already planning its next rescue
operation.
Rethinking asset correlation in the era of QE.
Global fiscal/monetary policies are creating
bubbles everywhere.
China
Chinese to shutter a US consulate in
retaliation for Houston.
Pompeo calls for a ‘peoples’ uprising’ in
China.
Bottom
line. In praise of cash.
The future may not
look like the past.
News on Stocks in Our Portfolios
Revenue of $40.95B (-9.0% Y/Y) in-line.
Revenue of $38.03B (+12.8% Y/Y) beats by $1.48B.
W.W. Grainger (NYSE:GWW): Q2
Non-GAAP EPS of $3.75 beats by $0.24; GAAP EPS of $2.10 misses
by $0.86.
Revenue of $2.84B (-1.7% Y/Y) beats by $70M.
What
I am reading today
Shadow lenders are
helping to fuel the student loan crisis.
Good things
taken too far.
Why this revolution isn’t like the
60’s.
This time is different.
Interview with former Israeli
intelligence chief on the recent explosions in Iran.
John Cleese on political
correctness.
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