Friday, September 11, 2020

The Morning Call--The best thing to do is nothing


The Morning Call




The Market




The Averages  (27534, 3339) resumed their decline yesterday, making a lower high.   The question now, is where will they find support?  Wherever that is I am not changing my current operating assumption that the Market’s bias is to the upside long term---until QEInfinity/Forever either comes to an end or investors conclude that it has been, is and will be an economic disaster. 


Speaking of which, the Fed bought no bond ETF’s in August.



Gold see sawed back lower, making a fourth lower high but remaining above that July/August minor support level.  In other words, consolidating.  TLT was up ½%, but it too seems to be consolidating. The dollar was up; but its chart remains the ugliest of those indicators that I follow.  All in all, nothing of informational value in the pin action of these indicators.


            Key charts to watch.



            Thursday in the charts.







              The Economy




August CPI came in at +0.4% versus expectations of +0.3%; core CPI was +0.4% versus +0.2%.





July UK industrial production rose 5.2% versus estimates of up 4.0%; GDP grew 6.6% versus 6.7%; its trade balance was -L8.6 billion versus -L6.9 billion.


August Japanese PPI was +0.2%, in line.


August German CPI was -0.1%, in line.


August Chinese loan grow was up +13%, in line.




                          US on track for strong third quarter recovery.



                          Update from my favorite optimist.



                          Container rates shattered as US imports surge



                          The surging euro is a problem for the ECB.



            The coronavirus


              Lockdowns don’t (didn’t work).



              Senate dems block GOP pandemic relief bill.



              Europe’s ‘second wave’ builds.






              The trade volume between the US and China is picking up.



            Bottom line.  The best thing to do is nothing.



    News on Stocks in Our Portfolios


Oracle (NYSE:ORCL): FQ1 Non-GAAP EPS of $0.93 beats by $0.07; GAAP EPS of $0.72 beats by $0.07.

Revenue of $9.37B (+1.6% Y/Y) beats by $190M.



What I am reading today


            How to save more.



                        The California fires and climate change.



            An endless responsibility.



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