The Morning Call
8/25/20
The
Market
Technical
The Averages (28308, 3431) had a great day, with the S&P blasting
through its former all-time high (the Dow not).
That is a big plus. However, (1)
volume was weak, (2) both of the indices made a gap up open, joining those two
gap up opens made three weeks ago, (3) the VIX was down only fractionally on strong
up day in the Averages, continuing to reflect investor concern and (4) breadth
remains in overbought territory [note: this overbought condition exists only in
the indices. As you can see in the
articles below, breadth in the rest of the Market is awful. This dichotomy makes the technical picture
even worse.] Nonetheless, I am sticking
with my assumption that the Market’s bias remains to the upside long term.
More on negative breadth.
https://politicalcalculations.blogspot.com/
Even more.
http://traderfeed.blogspot.com/2020/08/a-different-look-at-markets-weak-breadth.html
Investors versus
the newsletters.
https://sentimentrader.com/blog/mom-pop-sell-while-newsletters-tell-them-to-buy--24-8-2020/
Gold and the long
bond were down again though only fractionally.
GLD’s chart remains strong---it remains in the uptrend off its June
low. TLT ended above its 100 DMA (now resistance)
for a second day (if it remains there through the close today, it will revert
to support). The dollar was up but has made
a lower high---a negative.
Gold still shines.
https://www.advisorperspectives.com/commentaries/2020/08/24/gold-still-shines-bright
Conflicting
Treasury market signals.
http://www.capitalspectator.com/conflicting-treasury-market-signals-keep-investors-guessing/
US Treasury over
dependent on short term maturities.
https://global-macro-monitor.com/2020/08/22/black-swan-hunting/
Monday in the
charts.
https://www.zerohedge.com/markets/aaplocalypse-now-nasdaq-sp-hit-record-highs-bonds-bullion-slide
Fundamental
Headlines
The
Economy
US
Month to date
retail chain store sales growth was much improved from the prior week.
International
Other
Eight high frequency economic indicators.
https://www.calculatedriskblog.com/2020/08/eight-high-frequency-indicators-for_24.html
Lower investment/production has nothing to do
with a dollar shortage.
No ‘V’ for thee.
http://econbrowser.com/archives/2020/08/no-v-for-thee
Global companies raise record amount of funds
in August.
Mortgage
delinquencies hit decade high,.
https://www.zerohedge.com/markets/mortgage-delinquencies-plus-90-days-due-hits-decade-high
The
coronavirus
Hong Kong has first documented case of coronavirus
reinfection.
Sweden’s coronavirus strategy hints at herd
immunity.
The
Fed
Powell to introduce revised Fed policy on
inflation.
https://www.zerohedge.com/markets/previewing-powells-j-hole-jawbone-buy-gold-case-it-all-goes-wrong
China
US/China trade talks back on.
Bottom
line. No easy way out.
Where to invest for income.
https://www.morningstar.com/articles/998976/where-to-invest-for-income
News on Stocks in Our Portfolios
Medtronic (NYSE:MDT): FQ1
Non-GAAP EPS of $0.62 beats by $0.44; GAAP EPS of $0.36 beats
by $0.62.
Revenue
of $6.51B (-13.1% Y/Y) beats by $1.03B.
Hormel
Foods (NYSE:HRL): FQ3
GAAP EPS of $0.37 beats by $0.02.
Revenue
of $2.38B (+3.9% Y/Y) in-line.
Bank
of Nova Scotia (NYSE:BNS):
FQ3 Non-GAAP EPS of C$1.04 misses by C$0.07; GAAP EPS of C$1.04 in-line.
Revenue
of C$7.73B (+0.9% Y/Y) misses by $210M.
Bank of Nova Scotia (NYSE:BNS) declares CAD
0.90/share quarterly dividend, in line with previous.
What
I am reading today
The 4% rule is dead. What should retirees do now?
https://www.zerohedge.com/personal-finance/4-rule-dead-what-should-retirees-do-now
Quote of the day.
Visit Investing
for Survival’s website (http://investingforsurvival.com/home)
to learn more about our Investment Strategy, Prices Disciplines and Subscriber
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