The Morning Call--Stretched

The Morning Call

 

1/13/21

 

The Market

         

    Technical

 

            Stocks at important technical level.

            https://www.zerohedge.com/markets/break-level-will-trigger-colossal-selling

 

Ditto.

https://www.zerohedge.com/the-market-ear/cae3jhjxd5

 

            So is the dollar.

            https://www.zerohedge.com/markets/dollar-freak-show

           

            Tuesday in the charts.

            https://www.zerohedge.com/markets/tech-wrecks-and-russell-roars-dollar-dead-cat-bounce-dies

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications rose 16.7% while purchase applications were up 10%.

 

December inflation came in at 0.4%, in line; core inflation was 0.1%, also in line.

 

                        International

 

November EU industrial production was up 2.3% versus expectations of up 0.2%.

 

December German PPI came in at +0.6% versus +0.1% reported in November.

 

December YoY Japanese machine tool orders increased 8.7% versus the November reading of +8.6%.

 

                        Other

 

              Europe appears headed for a double dip recession.

              https://www.bloomberg.com/news/articles/2021-01-12/euro-area-heads-for-double-dip-recession-as-lockdowns-drag-on?srnd=economics-vp&sref=loFkkPMQ

 

  But what if we get a strong recovery?

  https://www.ft.com/content/4429c25c-a160-49d7-b83b-d55141d75914

 

              Shipping rates hit record high.

              https://www.zerohedge.com/commodities/new-world-record-set-shipping-rates-350000-day

 

China

 

  China funding US universities.

  https://freebeacon.com/campus/organizations-linked-to-chinese-military-are-a-cash-cow-for-american-colleges/

 

  Tracking US/China trade.

  https://politicalcalculations.blogspot.com/2021/01/tracking-us-china-trade-through.html#.X_3w69hKiM8

 

            Bottom line.  I don’t often put a technical opinion in the Bottom Line.  But this guy is one of the best and is cautioning investors short term.  The market is extremely stretched (must read).

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

 

              Inflation cometh.

              https://global-macro-monitor.com/2021/01/11/inflation-cometh-and-so-is-a-big-market-correction/

 

  What do rising rates imply for stocks, REIT’s and gold?

  http://www.capitalspectator.com/what-do-rising-interest-rates-imply-for-stocks-reits-and-gold/#more-15346

 

  Even smart people make mistakes.

  https://www.evidenceinvestor.com/even-smart-people-make-mistakes/

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            Five essential social security numbers that you need to know in 2021.

            https://www.usatoday.com/story/money/personalfinance/retirement/2021/01/10/5-essential-social-security-numbers-you-need-to-know-in-2021/115261622/

                    

            Thoughts on Twitter banning Trump.

             https://marginalrevolution.com/marginalrevolution/2021/01/should-twitter-have-banned-trump.html

 

            Quote of the day.

            Quotation of the Day... - Cafe Hayek

 

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