Friday, September 11, 2020

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

 

The Morning Call

 

9/11/20

 

The Market

         

    Technical

 

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.

            https://www.zerohedge.com/markets/powell-sending-message-fed-bought-no-bond-etfs-entire-month-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.

            https://www.zerohedge.com/markets/key-charts-technicals-keep-firing-warning-signs-big-structural-level

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/brexit-butterflies-bailout-bill-breakdown-crush-cable-bust-big-tech-bounce

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

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

                          https://www.zerohedge.com/markets/us-consumer-prices-accelerate-august-used-car-furniture-prices-spike-rent-inflation-slows

 

                        International

 

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.

 

                        Other

 

                          US on track for strong third quarter recovery.

                          http://www.capitalspectator.com/us-q3-gdp-outlook-remains-on-track-for-strong-rebound/

 

                          Update from my favorite optimist.

                          http://scottgrannis.blogspot.com/2020/09/promising-signs.html

 

                          Container rates shattered as US imports surge

                          https://www.zerohedge.com/economics/container-rate-records-are-shattered-us-imports-surge

 

                          The surging euro is a problem for the ECB.

                           https://www.nytimes.com/2020/09/10/business/ecb-euro.html

 

            The coronavirus

 

              Lockdowns don’t (didn’t work).

              https://www.zerohedge.com/political/evidence-keeps-piling-lockdowns-dont-work

 

              Senate dems block GOP pandemic relief bill.

              https://www.zerohedge.com/markets/senate-vote-gop-pandemic-stimulus-bill-opposed-democrats

 

              Europe’s ‘second wave’ builds.

              https://www.zerohedge.com/geopolitical/global-covid-19-deaths-top-900000-china-confirms-another-reinfected-patient

 

 

            China

 

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

              https://politicalcalculations.blogspot.com/2020/09/china-us-take-positive-steps-in-trade.html#.X1pvIHlKiM8

 

            Bottom line.  The best thing to do is nothing.

              https://www.zerohedge.com/markets/first-most-important-rule-investing-master-art-doing-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.

            https://www.usatoday.com/story/money/personalfinance/2020/09/09/probably-not-saving-enough-how-to-fix-that/42393689/

 

                        The California fires and climate change.

            https://johnhcochrane.blogspot.com/2020/09/smoke-and-nukes.html

 

            An endless responsibility.

            https://thereformedbroker.com/2020/09/10/an-endless-responsibility/

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

 

 

 

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