The Morning Call
8/7/20
The
Market
Technical
The Averages (27386, 3344) continued their move up. But (1) the Dow still hasn’t surpassed its
June high, (2) both of the indices have made two gap up opens this week, (3) the
VIX continues confirm the directional move of stock prices but not their magnitude,
and (4) breadth is in overbought territory.
All in all, this pin action is not indicative of a solid trending Market,
just a strong S&P. Nonetheless, I am
sticking with my assumption that the Market’s bias remains to the upside.
https://www.zerohedge.com/markets/filling-gaps
Gold was up
another 1 3/8%, finishing above the upper boundary of its long term trading
range for a third day (if it remains there through the close today, it will
reset to an uptrend). The long bond reversed
itself yet again, putting it back above the uptrend off its June low but still below
its March and April high closes. It
continues to vacillate at this key level.
Follow through. The dollar was unchanged, remaining below the lower boundary
of its short term downtrend. UUP and GLD
continue to point to a weak economy but TLT could potentially be a leading
indicator calling that scenario into question.
http://www.capitalspectator.com/pondering-lower-real-yields-and-higher-inflation-forecasts/
Thursday in the
charts.
Fundamental
Headlines
The
Economy
US
July nonfarm
payrolls increased by 1,763,000 versus expectations of +1,600,000; the unemployment
rate was 10.2% versus 10.5%
International
June Japanese
household spending rose 13% versus consensus of +7.5%; June leading economic indicators
came in at 85 versus 81.
The June German
trade balance was E14.5 billion versus estimates of E10.5 billion.
The July Chinese
trade balance was $62.3 billion versus forecasts of $42.0 billion.
Other
Household debt decreased in Q2.
https://www.calculatedriskblog.com/2020/08/ny-fed-q2-report-total-household-debt.html
Global economy shows signs of recovery in
July.
https://www.markiteconomics.com/Public/Home/PressRelease/b9a1f47a1c714124a1b412da6b637e75
The
coronavirus
***overnight update.
America is headed for an unprecedented wave of
evictions.
https://www.thenation.com/article/politics/rent-evictions-homelessness/
Second wave of layoffs are underway.
https://www.zerohedge.com/markets/new-survey-confirms-second-wave-us-layoffs-well-under-way
Monetary
Policy
Bank of England
leaves rates unchanged but voted against expanding its bond buying program.
China
Trump bans use of
TikTok and WeChat.
https://www.zerohedge.com/markets/trump-signs-executive-order-banning-tiktok-wechat
US and China to ‘review’ results to date of
Phase one deal next week.
https://www.zerohedge.com/economics/uschina-phase-one-agreement-good-luck-compliance-review
China helping the Saudi’s build nuclear
capability.
China/Russia ‘dedollarization’ reaches break though
moment.
Bottom
line. When the real money runs out.
https://www.zerohedge.com/markets/rabo-everything-can-appear-hunky-doryuntil-real-money-runs-out
More for the optimists.
News on Stocks in Our Portfolios
C.H. Robinson Worldwide (NASDAQ:CHRW) declares
$0.51/share quarterly dividend, in line with previous.
Nike (NYSE:NKE) declares
$0.245/share quarterly dividend, in line with previous.
What
I am reading today
Quote of the day.
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for Survival’s website (http://investingforsurvival.com/home)
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