The Morning Call---early

The Morning Call

 

6/1/23

 

The Market

         

    Technical

               

                Wednesday in the charts.

                https://www.zerohedge.com/markets/ai-mania-meltup-may-hides-recession-signals-commodities-credit-curves

 

Note: with the decline on Wednesday, the S&P failed to confirm its break above the 4200 level.  That keeps us in a range bound market---AI euphoria notwithstanding.

 

                Bulls in control.

https://realinvestmentadvice.com/technical-review-of-the-market-bulls-in-control/?utm_medium=email&utm_campaign=Tuesday%20Takes%20May%2030&utm_content=Tuesday%20Takes%20May%2030+CID_70767af67382aaeb19c6a26f2d9f3710&utm_source=RIA%20Email%20Marketing%20Software&utm_term=READ%20MORE

 

                The impact of quant funds.

https://www.wsj.com/articles/why-are-markets-so-calm-its-revenge-of-the-quant-funds-26a93425?mod=hp_lead_pos8&utm_campaign=What%20I%20Am%20Reading&utm_medium=email&_hsmi=260306296&_hsenc=p2ANqtz-80oo-dF5-ISNALzXoypyv5MXHZujV217m61H8zl3AwLAKx5LEUoGW9yuQXe3kNqZiZYpQ-Cpwx6sgPfnV1LmBuTkSYpg&utm_content=260306296&utm_source=hs_email

 

               AI hits mania phase.

               https://herbgreenberg.substack.com/p/ai-hits-mania-phase

           

              Volatility index sell signal.

              https://www.zerohedge.com/markets/nasdaq-triggers-new-volatility-correlation-sell-signal

 

                  The coming liquidity squeeze.

              https://www.zerohedge.com/the-market-ear/challenging-liquidity

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Month to date retail chain store sales grew slower than in the prior week.

 

April job openings (JOLTS) were 10.1 million versus predictions of 9.4 million.

                          https://www.advisorperspectives.com/dshort/updates/2023/05/31/jolts-job-openings-unexpectedly-rise-april

                                     

                          The May Chicago PMI came in at 40.4 versus expectations of 47.0.

 

                        International

 

                        Other

           

            Inflation

 

              Commodity prices pointing to lower inflation.

              https://www.bloomberg.com/news/articles/2023-05-31/commodity-crash-signals-disinflation-is-taking-hold-for-now?srnd=premium&sref=loFkkPMQ

           

            Recession

 

              Current data still say no recession.

              https://www.capitalspectator.com/how-long-will-us-economic-resilience-last/#more-20259

 

              More data on the rising number of bankruptcies.

              https://politicalcalculations.blogspot.com/2023/05/a-rising-tide-of-chapter-11-bankruptcy.html

           

              Follow the money.

              https://www.wsj.com/articles/where-is-the-u-s-economy-headed-follow-the-money-c79a6b1c?mod=economy_lead_story

 

              The Fed’s latest Beige Book report showed an economy growing but sluggishly.

              https://www.zerohedge.com/economics/beige-book-shows-us-economy-turning-more-sluggish

 

The Debt Ceiling

 

              Prospects for passage in the senate.

              https://www.zerohedge.com/political/debt-deal-inches-towards-senate-mcconnell-prepares-battle-conservative-holdouts

           

            China

 

              Chinese stocks pointing toward recession.

              https://www.wsj.com/articles/heres-why-stock-market-investors-turned-bearish-on-china-e1cc345e?mod=economy_lead_pos3

 

    News on Stocks in Our Portfolios

 

What I am reading today

 

           

                        Wars that we are discouraged from seeing.

            https://www.nakedcapitalism.com/2023/05/the-wars-we-are-discouraged-from-seeing.html

 

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