The Morning Call
10/2/20
The
Market
Technical
The Averages (27816, 3380) had a roller coaster day but ended
to the upside, maintaining the trend of new higher highs. At the
moment, the only short term negative is those gap up opens down below, which,
as you know, I believe will have to be filled. Longer term, I still believe that the Market’s
bias is to the upside and will remain so as long as investors buy into QEInfinity/Forever.
Historic
pre-election sentiment.
https://thereformedbroker.com/2020/10/01/wall-street-sentiment-into-elections/
Gold was up,
extending its bounce off its 100 DMA, though it is still within a short term
trend of lower highs. TLT recovered from
Wednesday whackage, but not enough to undo Wednesday’s technical damage. The
dollar declined, but remained in a developing trend of higher lows.
Thursday
in the charts.
https://www.zerohedge.com/markets/copper-crude-crypto-credit-all-crumble-stimulus-hopes-fade
Fundamental
Headlines
The
Economy
US
August construction
spending rose 1.4% versus estimates of +0.8%.
The September final manufacturing
PMI was 53.2 versus consensus of 53.5.
The September ISM
manufacturing index came in at 55.4 versus forecasts of 56.4
September nonfarm payrolls increased by
661,000 jobs versus projections of
850,000; the unemployment rate fell to 7.9% versus 8.2%.
https://www.zerohedge.com/markets/us-unemployment-rate-unexpectedly-plunges-below-8-661k-jobs-added
International
The August Japanese unemployment rate was
3.0%, in line; September consumer confidence was 32.7 versus 32.0.
September EU flash CPI was 0.1%, in line.
Other
August median household income.
Americans burned through savings in August.
Hotel occupancy
rates down 31.5% YoY.
https://www.calculatedriskblog.com/2020/10/hotels-occupancy-rate-declined-315-year.html
Why the real estate boom could last for years.
https://www.axios.com/real-estate-market-819e3c85-3765-4014-91c0-b545be6d5935.html
Small firm bankruptcies soar.
https://www.zerohedge.com/markets/small-firm-bust-accelerates-bankruptcies-soar-september
The Fed
Bring back Glass Steagall.
https://thehill.com/opinion/finance/518803-to-restore-financial-stability-bring-back-glass-steagall
Fed policy and
measuring inflation.
Fiscal
Policy
Federal spending will excess $6 trillion in
FY2020.
Hopes for a
stimulus bill wane.
Bottom line.
‘long term the economy
will grow at a historically subpar secular rate due to the twin burdens of
egregiously irresponsible fiscal and monetary policies---which, by the way, are
becoming even more egregiously irresponsible as a result of measures being
taken by the government and the Fed in dealing with the current crisis.’
News on Stocks in Our Portfolios
What
I am reading today
Crows
possess higher intelligence long thought primarily human.
https://www.statnews.com/2020/09/24/crows-possess-higher-intelligence-long-thought-primarily-human/
Thoughts on the pussification of American youth.
https://www.zerohedge.com/political/smith-pussification-americas-youth-scientifically-engineered
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