Thursday, December 14, 2023

The Morning Call---Behold the 'Fed pivot'

The Morning Call

 

12/14/23

 

The Market

         

    Technical

                

                 Wednesday in the charts.

                 https://www.zerohedge.com/markets/fed-signals-mission-accomplished-sparks-market-boom-election-year-rate-cut-bonanza

 

Note: the S&P roared yesterday on what the Market has interpreted as the ‘Fed pivot’.  In the process, it reset its short term trading range to an uptrend.  The upper boundary of the trend is presently ~4911.  However, the next resistance level is the upper boundary of its intermediate term trading range ~4818, which is also its all time high.  Both should present decent resistance.  There is room for a trade but that is as far as I will go.  Remember, (1) it is not clear a recession has been avoided and (2) history tells us to sell the Fed’s first rate cut. 

 

                 One money manager’s reaction.

                 https://www.zerohedge.com/markets/fed-all-over-place-just-guessing

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly initial jobless claims totaled 202,000 versus expectations of 220,000.

 

November retail sales advanced 0.3% versus projections of -0.1%; ex autos, they were up 0.2% versus -0.1%.

                          https://www.zerohedge.com/personal-finance/retail-sales-unexpectedly-surged-november

 

                        International

 

October Japanese machinery orders were up 0.7% versus estimates

of -0.5%; October industrial production was up 1.3% versus +1.0%.

 

                        Other

 

            The Fed

 

The FOMC wrapped up its December meeting; and the result was not what many expected.  Instead of the Fed pushing back on the Markets which have been discounting a more dovish Fed, it seemingly took a lip lock on the ‘Fed pivot’ scenario.  The Markets responded accordingly.  Details below.

https://www.zerohedge.com/markets/fomc-11

 

The ECB held rates steady but cut outlook for growth and inflation.

https://www.zerohedge.com/markets/ecb-holds-rates-steady-cuts-growth-inflation-outlooks

 

The Bank of England held rates steady and reiterated ‘higher for longer’.

https://www.zerohedge.com/markets/boe-holds-rates-15-year-high-warns-still-some-way-go

 

Inflation

 

              CPI less shelter (must read)

              https://scottgrannis.blogspot.com/2023/12/cpi-less-shelter-is-only-14.html

 

              The many faces of CPI.

              https://econbrowser.com/archives/2023/12/november-cpi-headline-core-supercore-trimmed-median-and-instantaneous

 

                  What is different now.

              https://www.advisorperspectives.com/commentaries/2023/12/12/stepping-on-rake-smead-capital

 

            Recession

 

Does our dysfunctional political environment impact Americans’ perception of the economy?

https://gregor.substack.com/p/fog-lifting

 

              US/China trade shows signs of bottoming.

              https://politicalcalculations.blogspot.com/2023/12/us-china-trade-recession-shows-signs-of.html

 

            China

 

              Xi disappoints, offering few new economic stimulus proposals.

  https://www.bloomberg.com/news/articles/2023-12-12/china-wraps-key-economic-meeting-to-determine-2024-growth-goal?srnd=premium&embedded-checkout=true&sref=loFkkPMQ

 

    Bottom line

 

            Stocks versus bonds in 2024.

            https://www.zerohedge.com/markets/kiss-bonds

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            Quote of the day.

            https://cafehayek.com/2023/12/quotation-of-the-day-4481.html

 

                        Bureaucracy kills productivity.

            https://www.adamsmith.org/blog/bureaucracy-kills-productivity-growth

 

            The weird world of celebrity training.

            https://www.theguardian.com/music/2023/dec/11/weird-world-celebrity-training-how-taylor-swift-beyonce-madonna-get-in-shape

 

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

 

 

 


No comments:

Post a Comment