The Morning Call--The blind leading the blind

 

The Morning Call

 

4/6/21

 

The Market

 

    Technical

                

                 Monday in the charts.

                 https://www.zerohedge.com/markets/dollar-dumped-crude-crushed-bonds-bitcoin-big-tech-bid

 

                 What is Market breadth telling us?

                 http://traderfeed.blogspot.com/2021/04/what-is-market-breadth-telling-us.html

 

                 More evidence of declining support.

                 https://www.zerohedge.com/markets/market-prices-accelerated-fed-rate-hike-timingtrajectory-specs-dump-bonds-abandon-vix

 

                 A perspective on secular bull and bear markets.

                 https://www.advisorperspectives.com/dshort/updates/2021/04/05/a-perspective-on-secular-bull-and-bear-markets

                

                 Who is going to buy all those Treasuries?

                 https://www.zerohedge.com/markets/one-bank-spoils-party-reminds-traders-we-are-close-breaking-point

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Month to date retail chain store sales continue to show sharp declines.

 

February factory orders fell 08.% versus expectations of -0.5%.

 

The final March services PMI was reported at 60.4 versus estimates of 60.0; the final composite PMI was 59.7 versus 59.1.

https://www.advisorperspectives.com/dshort/updates/2021/04/05/march-markit-services-pmi-fastest-rise-in-business-activity-since-july-2014-as-new-order-growth-reaches-six-year-high

 

The March ISM nonmanufacturing index came in at 63.7 versus predictions of 59.0.

                           https://www.advisorperspectives.com/dshort/updates/2021/04/05/ism-services-10th-consecutive-month-of-expansion

 

                        International

 

The February EU unemployment rates was 8.3% versus consensus of 8.1%.

 

February Japanese household spending rose 2.4% versus projections of +2.8%; February average earnings were down 0.2% versus -1.3% recorded in January.

 

The March Chinese Caixin services PMI was 54.3 versus 51.5 reported in February; the composite PMI was 53.1 versus 51.7 in February.

 

                        Other

 

                          Update on seven high frequency indicators.

                          https://www.calculatedriskblog.com/2021/04/seven-high-frequency-indicators-for.html

 

                          Housing inventories shrink to new lows.

                                  https://www.zerohedge.com/markets/housing-market-euphoria-craziest-decades-inventory-sinks-new-low

 

I have observed numerous times that while I believe that there has been sufficient reform in the management of US banks’ balance sheet, the same could not be said for the rest of the world, especially Europe---and that posed a risk to the global banking system.  Here is the latest example of the problems an overleveraged, risk laden bank balance sheet can create.

                          https://www.zerohedge.com/markets/credit-suisse-headed-2nd-straight-quarterly-loss-despite-cutting-dividend-slashing-buybacks

                       

            Biden’s Plan

 

              Building back to the 1860’s.

              https://www.nationalreview.com/corner/joe-biden-building-back-to-the-1860s/

 

              Good question.

              https://www.adamsmith.org/blog/will-hutton-manages-to-ask-a-good-question

 

              An early estimate on the revenue that would be raised by Biden’s tax increases.

              https://econbrowser.com/archives/2021/04/infrastructure-investment-and-taxes

           

              Wall Street braces for tax increases.

              https://www.ft.com/content/1dc44e23-2cad-4f39-9335-9fbf6e745834

 

              A sceptic’s view.

              https://www.zerohedge.com/political/why-joe-bidens-2-trillion-infrastructure-plan-may-fail

 

            The coronavirus

 

              The feast of consequences.

              https://www.nakedcapitalism.com/2021/04/good-friday-and-easter-church-raid-attempts-by-police-over-covid-intensify-conservative-christian-vaccine-hesitancy.html

 

 

            Bottom line.  The blind leading the blind.

                            https://www.zerohedge.com/markets/survey-retail-investors-shows-blind-lead-blind

           

              BofA sell signal triggered.

              https://www.zerohedge.com/markets/bofa-sell-signal-triggered-any-moment-last-happened-time-was-may-2007

 

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            From ‘play ball’ to curve ball.

            https://www.zerohedge.com/economics/rabo-play-ball-curve-ball-no-time-all

 

            Is war between Russian and Ukraine inevitable?

            https://www.zerohedge.com/geopolitical/war-between-russia-and-ukraine-now-inevitable

 

 

 

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