The Morning Call--Thank you, central planners

 

The Morning Call

 

10/26/21

 

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/stocks-bonds-bitcoin-bullion-all-bid-billionaire-tax-threat-builds

 

            Key stock market indicator switches to buy signal.

            https://www.marketwatch.com/story/this-key-stock-market-indicator-has-switched-to-a-buy-signal-01634825706?mod=home-page

 

            The advance/decline line makes a new high.

            https://sentimentrader.com/blog/stocks-internal-momentum-has-turned-up--25-10-2021/

           

            Short interest remains high.

            https://www.zerohedge.com/the-market-ear/ccqbmaxj9

 

            Earnings revision breadth is starting to roll over.

            https://www.zerohedge.com/the-market-ear/cpwn16i4p

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The October Dallas Fed manufacturing index came in at 14.6 versus 4.6 on September.

 

                        International

 

                        Other

 

                          Update on seven high frequency economic indicators.

                          https://www.calculatedriskblog.com/2021/10/seven-high-frequency-indicators-for_25.html

 

            The Fed

 

              Investors worried about central bank errors.

              https://www.ft.com/content/58579784-5fc6-485a-bc57-2b7a43d4b69c

 

            Fiscal Policy

 

              A thought on the absurdity of an unrealized capital gains tax.

              https://marginalrevolution.com/marginalrevolution/2021/10/the-tax-on-unrealized-capital-gains.html

 

            Inflation

 

              We don’t have a supply shortage problem; we have a lockdown problem.

              https://www.forbes.com/sites/johntamny/2021/10/24/theres-no-supply-chain-shortage-or-inflation-theres-just-central-planning/?sh=2c8e02991479

 

                          Supply side constraints were entirely predictable.

              https://www.project-syndicate.org/commentary/supply-shortages-inflation-result-of-government-policies-by-john-h-cochrane-2021-10

 

Kimberly Clark joins the ranks of those companies suffering margin compression due to inflation.

https://www.zerohedge.com/markets/beyond-what-we-anticipated-kimberly-clark-slashes-forecast-amid-inflation-supply-chain

 

                          The case against prolonged inflation.

              https://www.pragcap.com/is-hyperinflation-coming/

 

                        China

 

The extent and implications of the China slowdown (a bit wonky, but you will get the point).

https://econbrowser.com/archives/2021/10/the-extent-and-implications-of-the-china-slowdown

 

 

                        The coronavirus

 

              Covid didn’t make anybody do anything, central planners did.

              https://www.aier.org/article/the-devil-didnt-make-em-do-it-and-neither-did-the-pandemic/

 

     Bottom line.

 

            An interview with Jim Bianco.

            https://themarket.ch/interview/persistent-inflation-is-going-to-be-more-problematic-than-everybody-thinks-ld.5266

 

            Lance Roberts outlines the bullish and bearish cases.

            https://www.advisorperspectives.com/commentaries/2021/10/25/the-bullish-bearish-market-case-1

 

            An example of the mispricing of risk.

            https://www.knowledgeleaderscapital.com/2021/10/22/the-epitome-of-financial-repression-in-2-charts/

 

    News on Stocks in Our Portfolios

 

Sherwin Williams (NYSE:SHW): Q3 Non-GAAP EPS of $2.09 beats by $0.04; GAAP EPS of $1.88 misses by $0.01.

Revenue of $5.15B (+0.6% Y/Y) beats by $60M.

 

What I am reading today

           

                        Biden blames Covid for delay in releasing JFK assassination files.

            https://legalinsurrection.com/2021/10/biden-blames-covid-for-decision-to-delay-release-of-jfk-assassination-files/

 

            The health benefits of nuts.

            https://www.upi.com/Health_News/2021/10/20/breast-cancer-nuts-survival-study/1631634735622/

 

            Baldwin’s gun didn’t accidentally discharge.

            https://pjmedia.com/news-and-politics/kevindowneyjr/2021/10/23/alec-baldwins-gun-didnt-accidentally-discharge-but-gun-owners-already-know-that-n1526441

           

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