The Morning Call
7/29/20
The
Market
Technical
The Averages (26379, 3218) were off yesterday and ended
somewhat out of tune with each other. While
they are not out of sync with respect to a major trend, but (1) the S&P is
above its June high, the Dow is not, (2) the Dow is near challenging its 200 DMA
[now support], the S&P is not and (3) while both are making higher lows,
the S&P is making higher highs; the Dow is not. All this as (1) breadth remains strong; though
it has been treading water and (2) the VIX is caught between its 200 DMA and
its June low. In short, a Market that
seems to be backing and filling.
However, I am sticking with my assumption that the Market’s bias is to
the upside.
Update on margin
debt.
Subdued VIX making
markets uneasy.
Gold (183.75) was
up another 7/8% on big volume, making another new nine year high and drawing
ever closer to the upper boundary of its long term uptrend (185.85). The long bond resumed its upward trend. The dollar was up slightly, but remained near
the lower boundary of its short term downtrend, doing little to close Monday’s
gap down open.
Has gold reached
its peak?
What gold bugs are
missing.
Tuesday in the
charts.
Fundamental
Headlines
The
Economy
US
Month to date
retail chain store sales declined at a faster pace than in the prior week.
The May Case Shiller
home price index rose 0.4% versus forecasts of +0.8%.
The June trade balance was -$70.46 billion
versus projections of -$72.0 billion.
June wholesale inventories fell 2.0% versus
estimates of +0.5%.
July consumer confidence came in at 92.6
versus consensus of 94.5.
The July Richmond
Fed manufacturing index was reported at 10 versus expectations of 5.
International
June UK consumer
credit declined L-0.086 billion versus predictions of L-2.0 billion.
Other
The
coronavirus
***overnight update.
Ten coronavirus charts.
Flaring virus threatens global economic recovery.
Eviction wave is imminent unless moratorium is
extended.
China
US and China raise military stakes in South
China Sea,
Fiscal
Policy
Update on stimulus bill negotiations.
Bottom
line. QEInfinityForever affects more than the price
of the dollar and coffee beans.
What a weak dollar means to stock market leadership.
What a weak dollar means for economic growth.
News on Stocks in Our Portfolios
Revenue of $3.85B (-38.1% Y/Y) beats by $170M.
Revenue of $3.63B (-7.2% Y/Y) beats by $170M.
General Dynamics (NYSE:GD): Q2 GAAP
EPS of $2.18 in-line.
Revenue of $9.26B (-3.1% Y/Y) beats by $230M.
Automatic Data Processing (NASDAQ:ADP): Q4
Non-GAAP EPS of $1.14 beats by $0.18; GAAP EPS of $0.96 beats
by $0.01.
Revenue of $3.38B (-3.4% Y/Y) beats by $60M.
T. Rowe Price (NASDAQ:TROW): Q2 Non-GAAP EPS of $2.29 beats by $0.26; GAAP EPS
of $2.55 beats by $0.29.
Revenue of $1.42B (+1.4% Y/Y) beats by $10M.
What
I am reading today
Visit Investing
for Survival’s website (http://investingforsurvival.com/home)
to learn more about our Investment Strategy, Prices Disciplines and Subscriber
Service.
No comments:
Post a Comment