The Morning Call---Can the Averages hold yesterday's gain?

The Morning Call

 

11/17/20

 

The Market

         

    Technical

 

            Monday in the charts. 

            https://www.zerohedge.com/markets/dow-hits-record-high-vaccine-hope-trumps-covid-casedemic

 

            Yesterday was another raucous one, at least for equities.  Both the DJIA and the S&P made gap up opens, adding to the multitude prior gap up opens which I have mentioned numerous times (all of which need to be filled).  In addition, they ended above their all-time highs.  To confirm these breaks, the indices need to remain above those all-time highs through the close on Thursday.  On the other hand, bonds, the dollar and gold barely moved, making no attempt to challenge the boundaries of their current trading ranges.

            https://www.zerohedge.com/markets/bonds-arent-buying-light-end-tunnel-narrative

 

            All in?

            https://www.zerohedge.com/markets/all

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

                           

                            October retail sales rose 0.3% versus forecasts of +0.5%; ex autos, they              up 0.2% versus +0.6%.

                            https://www.zerohedge.com/personal-finance/us-retail-sales-disappoint-october-fiscal-stimulus-fades

 

                         International

 

                        Other

 

                          Double dip recession?

                          http://econbrowser.com/archives/2020/11/a-double-dip-recession

 

                          Percentage of mortgage loans in forbearance declines.

                          https://www.calculatedriskblog.com/2020/11/mba-survey-share-of-mortgage-loans-in_16.html

 

            The Fed

 

              There is no difference between the Fed and Congress.

              https://www.forbes.com/sites/johntamny/2020/11/15/be-serious-theres-no-difference-between-the-federal-reserve-and-congress/?sh=575be5917c91

 

            China

 

              Asia Pacific nations form world’s largest trading bloc.

              https://www.bbc.com/news/world-asia-54949260

              More Chinese state owned companies are defaulting.

              https://www.zerohedge.com/markets/chinas-bond-market-turmoil-worsens-more-state-owned-companies-default

 

            The coronavirus

 

              ***overnight update.

              https://www.zerohedge.com/geopolitical/us-covid-19-hospitalizations-reach-new-record-global-cases-top-55-million-live-updates

 

            Bottom line.

 

              Who owns equities?

              http://blog.yardeni.com/2020/11/income-wealth-in-america-who-owns.html

 

 

    News on Stocks in Our Portfolios

 

Home Depot (NYSE:HD): Q3 GAAP EPS of $3.18 beats by $0.15.

Revenue of $33.54B (+23.2% Y/Y) beats by $1.74B.

 

Altria: Buy the 9.1% yield

https://seekingalpha.com/article/4389564-altria-buy-9_1-yield-ignore-recent-losses?utm_medium=email&utm_source=seeking_alpha#alt2&mail_subject=mo-altria-buy-the-9-1-yield-ignore-the-recent-losses&utm_campaign=rta-stock-article&utm_content=link-0

 

What I am reading today

 

            Tax loss harvesting.

            https://www.usatoday.com/story/money/investing/2020/11/15/stock-market-loss-2020-reduce-taxes/114862960/

 

            Why we sigh.

            https://www.vice.com/en/article/7k9vyz/why-we-sigh

 

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