Wednesday, February 24, 2021

The Morning Call---QEInfinityForever

 

The Morning Call

 

2/24/21

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/momo-dumps-powell-pumps-crypto-slumps

 

            10 year Treasury yields spike above 1.4%.

            https://www.zerohedge.com/markets/stocks-spooked-10y-yield-tops-140

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 11.4% while purchase applications were down 11.1%  (undoubtedly weather related)

 

The February Richmond Fed manufacturing index came in at 14, the same reading as in January.

https://www.advisorperspectives.com/dshort/updates/2021/02/23/richmond-fed-manufacturing-continued-improvement-in-february

 

February consumer confidence was reported at 91.3 versus expectations of 90.0.

https://www.advisorperspectives.com/dshort/updates/2021/02/23/consumer-confidence-up-in-february

 

                        International

 

                          Q4 German GDP grew 0.3% versus estimates of +0.1%.

 

                        Other

                       

                          Global double dip recession.

                          https://politicalcalculations.blogspot.com/2021/02/the-global-double-dip-coronavirus.html#.YDVRtOhKiM8

 

                          More for the optimists.

                          https://www.nytimes.com/2021/02/23/upshot/biden-bonds-market-inflation.html

 

            The Fed

 

              The Fed and Yellen.

              https://www.zerohedge.com/markets/babble-7-fed-and-yellen

 

Powell testified before the senate yesterday (the house today)-------and the bottom line (drum roll, please) is that QEInfinity lives on.  Free money, free money, great God Almighty, free money.  Prepared remarks:

https://www.zerohedge.com/markets/feds-whatever-it-takes-moment-preview-powells-testimony-congress

 

 

            Fiscal Policy

 

              How much pork is in the $1.9 trillion stimulus bill?

              https://www.zerohedge.com/political/heres-how-much-wasteful-spending-new-19-trillion-stimulus-bill

 

            Inflation

 

              Reflation today, inflation tomorrow?

              http://www.capitalspectator.com/reflation-today-inflation-tomorrow/

 

            Speculation

 

              Ray Dalio on how to spot a bubble.

              https://ritholtz.com/2021/02/dalio-how-to-spot-a-bubble/

 

              Blowing up the ‘everything’ bubble.

              Technically Speaking: Blowing Up The "Everything Bubble" - RIA (realinvestmentadvice.com)

 

              What to do with all that cash.

              https://www.zerohedge.com/the-market-ear/cydne9ywni

 

              If this isn’t a blow off top……….

              https://www.zerohedge.com/markets/if-isnt-blow-top

 

            Bottom line.  According to Mr. Powell the monetary firehose will continue to spew forth billions and billions.  Short term, that will provide support for higher stock prices.  That said, the sounds of alarm over valuations are getting louder.  As I have said repeatedly, I do not know how or when this condition will be corrected.  But something that can’t go on forever, won’t.  Enjoy the ride but I do not think it wise to get sucked into chasing stocks ever higher---and taking some profits is not a bad idea.

 

              The riskiest stock market in over a century.

              https://americanconsequences.com/the-riskiest-stock-market-in-over-a-century-dan-ferris/

 

              Early innings of a move to commodities.

              https://www.zerohedge.com/markets/dam-going-break-we-are-early-innings-colossal-migration-commodities

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

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