The Morning Call---Mark Cuban on the Reddit phenomema

 

The Morning Call

 

2/4/21

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/big-shorts-bitcoin-bond-yields-black-gold-all-bounce

 

            The VIX ‘feels’ low.

            https://www.zerohedge.com/the-market-ear/cq097fn-7f

 

            The dollar breaks its short term downtrend.

            https://www.zerohedge.com/the-market-ear/cwj4wtjbvj

 

            One interpretation of the current bounce in equity prices.

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

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly jobless claims were reported at 779,000 versus projections of 830,000.

 

Q4 nonfarm productivity fell 4.8 versus estimates of -2.8%; unit labor costs rose 6.8% versus +4.0%.

                             

The January services PMI came in at 58.3 versus expectations of 57.5; the composite PMI was 58.7 versus 58.0.

 

The January ISM nonmanufacturing index was 58.7 versus consensus of 56.8.

                          https://www.calculatedriskblog.com/2021/02/ism-services-index-increased-to-587-in.html

 

                        International

 

The January EU construction PMI was 44.1 versus the prior reading of 45..5; the January German construction PMI was 46.6 versus 47.1 prior; the January UK construction PMI was 49.2 versus 52.9 forecast.

 

                          January EU retail sales were up 2.0% versus predictions of +1.6%.

 

                        Other

                  

 The CBO’s outlook and the GDP output gap---if Rogart and Reinhart are correct (too much debt inhibits economic growth) this gap won’t be closed even in 2025.

             http://econbrowser.com/archives/2021/02/cbo-outlook-and-the-output-gap

 

             The case against inflation.

             http://blog.yardeni.com/2021/02/inflation-is-up-for-discussion.html

 

             Ditto Europe.

             https://www.ft.com/content/cf8139b7-fdf0-471d-8ed1-420ca4449652

 

The Fed

 

  The Fed punchbowl fueling rampant home price appreciation.

  https://www.zerohedge.com/personal-finance/feds-monetary-punchbowl-fueling-rampant-home-price-appreciation-aei

 

 The Bank of England leaves QE unchanged, prepares for negative rates but warns   of inflation???

https://www.zerohedge.com/markets/boe-keeps-policy-unchanged-tells-banks-start-preparing-negative-rates-if-necessary-sees

 

The coronavirus

 

  Just a few weeks delay.

  https://marginalrevolution.com/marginalrevolution/2021/02/just-a-few-weeks-delay.html

 

              Long haul coronavirus suffers cast new light on chronic fatigue sufferers.

              https://www.nakedcapitalism.com/2021/02/long-haul-covid-cases-cast-new-light-on-chronic-fatigue-sufferers.html

 

            The short squeeze

 

              Winners and losers in the Reddit fueled squeeze.

              https://www.zerohedge.com/markets/meet-hedge-fund-made-killing-reddit-fueled-squeeze

 

              Gambling is reckless.

              https://www.pragcap.com/three-things-i-think-i-think-yolo-gambling-is-stupid/

 

              Counterpoint from Mark Cuban (must read).

              https://blogmaverick.com/2021/01/31/the-store-of-value-generation-is-kicking-your-ass-and-you-dont-even-know-it/

 

            Bottom line.

 

              More valuations.

              https://www.advisorperspectives.com/dshort/updates/2021/02/03/regression-to-trend-another-look-at-long-term-market-performance

                          https://www.advisorperspectives.com/dshort/updates/2021/02/03/the-q-ratio-and-market-valuation-january-update

 

             January dividends by the numbers.

            https://politicalcalculations.blogspot.com/2021/02/dividends-by-numbers-in-january-2021.html#.YBrunuhKiM8

 

    News on Stocks in Our Portfolios

 

What I am reading today

 

            Visa considering adding bitcoin to its network.

            https://www.zerohedge.com/markets/visa-says-no-reason-why-it-cannot-add-bitcoin-its-network

 

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