The Morning Call---S&P challenging its 6/13 low agaiin

 

The Morning Call

 

10/11/22

 

 

The Market

 

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/bonds-big-tech-bitcoin-bullion-all-battered-british-bond-market-breaks-again

 

Note: the S&P is again challenging its 6/13 low; if it remains there through the close on Wednesday, it will have been successful. Next stop ~3507.

 

            However,

            https://www.zerohedge.com/the-market-ear/cdusz1kksj

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The September small business optimism index came in at 92.1 versus consensus of 91.2.

 

                        International

 

The August UK unemployment rate was 3.5% versus predictions of 3.6%; August average earnings  grew 6.0% versus up 5.9%.

 

September Chinese YoY vehicle sales were up 25.7% versus expectations of +19.0%.

                              

                        Other

 

                          The world’s emergency lending capacity stretched thin.

                          https://www.wsj.com/articles/worlds-emergency-lending-capacity-is-getting-stretched-as-crises-deepen-11665340919

 

                          The strong dollar is pressuring US manufacturing rebound.

                          https://www.wsj.com/articles/strong-dollar-pressures-u-s-manufacturing-rebound-11665307981?mod=business_lead_pos1

 

                          Update on four high frequency indicators.

                          https://www.calculatedriskblog.com/2022/10/four-high-frequency-indicators-for_10.html

 

            The Fed

 

              What will the Fed do if faced with Market instability?

              https://www.advisorperspectives.com/commentaries/2022/10/10/market-instability-causes-boe-to-reverse-qt-is-the-fed-next

 

                          Return of the bond vigilantes.

  https://www.businessinsider.in/stock-market/news/bond-vigilantes-are-back-and-very-much-active-in-the-us-after-blowing-up-uk-markets-ed-yardeni-says/articleshow/94743509.cms?utm_source=social_Linkedin&utm_medium=social_sharing&utm_campaign=Click_through_social_share

 

              Bank of England expands bond buying program.

              https://www.zerohedge.com/markets/boe-expands-bond-buying-program-amid-historic-bond-rout-end-fire-sale-and-halt-market

 

            Inflation

 

              Mohammed El Erian believes that core inflation is still going up.

              https://www.cnbc.com/2022/10/09/allianz-chief-economic-adviser-el-erian-believes-core-inflation-is-still-going-up.html

 

            Geopolitics

 

              US ramps up curb on chip sales to China.

              https://www.bbc.com/news/business-63175527

 

     Bottom line

 

            Dealing with fear.

            https://www.morningstar.com/articles/1116177/fear-itself

 

            The risk of derivatives has morphed.

            https://www.ft.com/content/917f8395-8fdd-4e8b-b3ae-b6e1c7872f60

 

            Thoughts on investing.

            https://www.safalniveshak.com/manage-risk-of-randomness-in-investing/

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

            Tuesday morning humor.

            https://www.youtube.com/watch?v=_U7UCyAcSzY

 

 

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