The Morning Call--More worries about an economic slowdown

 

The Morning Call

 

7/9/21

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/bonds-bid-dollar-crypto-stocks-skid

 

            Breadth is bad.

            https://www.zerohedge.com/markets/markets-4th-worst-open-ever-stench-bad-breadth-worst-dot-com-bubble

 

            The derivatives’ positioning in the S&P.

            https://www.zerohedge.com/markets/if-we-lose-4300-gamma-turns-negative-if-we-lose-4250-its-void-lower

 

            Declining bond yields may signal end of reflation trade.

            https://www.reuters.com/business/finance/falling-us-bond-yields-may-signal-death-knell-reflation-stock-trade-2021-07-08/

 

            More opinions on what is driving bond prices higher.

            https://www.zerohedge.com/markets/heres-what-wall-street-thinks-behind-collapse-treasury-yields

 

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly jobless claims came in at 373,000 versus expectations of 350,000.

 

                          May consumer credit rose $35.2 billion versus estimates of $18.4 billion.

                          https://www.zerohedge.com/markets/consumer-credit-soars-most-record-credit-card-borrowings-explode

 

                        International

 

                        Other

 

                          US/China trade recovery slows.

                          https://politicalcalculations.blogspot.com/2021/07/us-china-trade-recovery-slows-to-near.html#.YOcZJOhKiUk

 

                          China’s dovish switch raises concerns about global recovery.

                          https://www.bloomberg.com/news/articles/2021-07-08/china-s-dovish-switch-ignites-fears-over-global-recovery-trade?sref=loFkkPMQ

 

                          The case for deflation.

                          https://www.advisorperspectives.com/commentaries/2021/07/08/the-case-for-deflation

 

Q2 nowcasts for GDP estimates are slipping but remain on track for stronger growth.

                          http://www.capitalspectator.com/us-q2-gdp-estimate-slips-but-still-on-track-for-stronger-growth/

 

                          Behind the Saudi/UAE dispute in OPEC.

                              https://www.zerohedge.com/geopolitical/real-reason-opec-talks-broke-down

 

                          Consumer sentiment changing about buying/selling a house.

                          https://www.zerohedge.com/personal-finance/americans-see-raging-housing-mania-bad-time-buy-good-time-sell-sentiments-spike

 

            The Fed

 

              China cuts its reserve ratio (adds liquidity to banking system).

              https://www.zerohedge.com/markets/china-cuts-reserve-ratio-05-unleashing-1-trillion-yuan-liquidity-boost-economy

 

            Inflation

 

              More on shrinkflation.

              https://www.zerohedge.com/economics/grocery-stores-are-masking-price-hikes-shrinkflation

 

              World food prices drop in June, but remain high.

              https://www.zerohedge.com/commodities/world-food-prices-drop-june-first-time-year-remain-near-decade-high

 

            Fiscal Policy

 

              Biden signs sweeping executive order to ‘increase competition’.

              https://www.zerohedge.com/markets/president-biden-expected-sign-sweeping-executive-order-promote-competition-across-tech

 

    Bottom  line.

 

            Stocks are not money pots.

            https://www.marketwatch.com/story/investors-now-see-stocks-as-money-pots-and-thats-just-not-in-the-cards-11625695703?mod=home-page

 

            More on valuation.

            https://www.advisorperspectives.com/dshort/updates/2021/07/08/regression-to-trend-another-look-at-long-term-market-performance

 

            Buy the dip opportunity?

            https://www.zerohedge.com/markets/re-openingvalue-trade-over

 

    News on Stocks in Our Portfolios

 

Paychex (NASDAQ:PAYX) declares $0.66/share quarterly dividend, in line with previous.

 

The company has also received board's approval to repurchase up to $400M of shares through Jan. 31, 2024.

.What I am reading today.

 

           

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.