The Morning Call
2/2/21
The
Market
Technical
Monday in the charts.
Has the correction arrived?
On
bubbles.
https://www.themoneyillusion.com/chestertons-fence-and-stock-prices/
Fundamental
Headlines
The
Economy
US
Month to date retail chain store sales improved from the prior week.
December construction spending rose 1.0%
versus expectations of +0.9%.
https://www.calculatedriskblog.com/2021/02/construction-spending-increased-10-in.html
The January manufacturing PMI came it at 59.2
versus projections of 59.1.
The January ISM
manufacturing index was reported at 58.7 versus consensus of 60.0.
International
Q4 EU flash GDP growth was -0.7% versus
forecasts of -1.0%.
Other
The short squeeze
Understanding a short squeeze.
http://econbrowser.com/archives/2021/01/flash-mob-finance
The ongoing Reddit
phenomena.
https://taibbi.substack.com/p/suck-it-wall-street
Why
Robinhood was forced to restrict trading in GameStop (and other) stock.
A
different perspective.
https://thereformedbroker.com/2021/01/31/wall-street-thanks-you-for-your-revolution/
And
a word of caution.
https://alephblog.com/2021/01/30/decentralized-ponzi/
What
the Hunt brothers can teach us about gamma (short) squeezes.
https://www.zerohedge.com/markets/what-hunt-brothers-can-teach-us-about-gamma-squeezes-0
The Fed
The Fed and the Japanification of America.
The ECB and the Argentinafication of Europe.
https://www.zerohedge.com/markets/ecb-playing-dangerous-game-collective-action-clauses-bonds
The
coronavirus
New cases decline 25%.
https://www.nakedcapitalism.com/2021/01/new-covid-cases-plunge-25-or-more-as-behavior-changes.html
Bottom
line. Equities had a good day as the impact that the
Reddit crowd has had on Market appears to be dwindling. Indeed, this whole affair could already be
over. I just don’t know. And until I do know how this circumstance
plays out, I believe that this is a time to do nothing. If you want to better understand what is
occurring, I have included a collection of articles above.
https://www.zerohedge.com/markets/most-shorted-stocks-are-crashing
News on Stocks in Our Portfolios
Exxon
vows no cut in its dividend,
Emerson Electric (NYSE:EMR): Q1 Non-GAAP EPS of $0.83 beats by $0.15; GAAP EPS of
$0.74 beats by $0.15.
Revenue
of $4.2B (+1.2% Y/Y) beats by $230M.
UPS (NYSE:UPS): Q4 Non-GAAP EPS of $2.66 beats by $0.52; GAAP EPS
of -$3.75 misses by $5.83.
Revenue
of $24.9B (+21.1% Y/Y) beats by $2.05B.
Franklin
Resources (NYSE:BEN): Q1 Non-GAAP EPS of $0.73 beats by $0.03; GAAP EPS
of $0.67 misses by $0.03.
Revenue
of $2B (+43.9% Y/Y) beats by $40M.
What
I am reading today
Tuesday morning humor.
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for Survival’s website (http://investingforsurvival.com/home)
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