Thursday, December 19, 2024

The Morning Call---There is a new sheriff in town.

 

The Morning Call

 

12/19/24

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/market-recaps/trump-dump-markets-plunge-post-election-powell-unexpectedly-turns-ultra-hawkish

 

Note: yesterday's pin action was the first sign of any real technical damage with the S&P closing below its 50 DMA (~5922). It needs to finish below that level today to confirm a reset from support to resistance. If it recovers, then yesterday could well be a selling climax for the current mini downtrend. If not then other support levels to watch are (1) the filling of the 11/6 gap up open [~5786], (2) the 100 DMA [~5743] and (3) the lower boundary of its very short term uptrend [~5710]. Clearly a lot of support inside the next 100 points to the downside. Today, follow through is the word.

            https://www.zerohedge.com/the-market-ear/life-after-crash-index-charts-watch

           

            Three massive golden crosses.

            https://www.zerohedge.com/the-market-ear/3-massive-golden-crosses

 

            The second largest VIX spike ever.

            https://www.zerohedge.com/the-market-ear/2nd-largest-vix-spike-ever

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly initial jobless claims totaled 220,000 versus estimates of 230,000.

 

Q3 final GDP growth was 3.1% versus expectations of 2.8%; the PCE price index was 2.2% versus 2.1%; real consumer spending was up 3.7% versus +3.5%; corporate profits were down 0.4% versus 0.0%.

https://www.zerohedge.com/markets/jobless-claims-improve-q3-gdp-revised-higher-another-manufacturing-survey-collapses

 

The December Philadelphia Fed manufacturing index came in at -16.4 versus consensus of +3.

 

                        International

 

The January German consumer confidence index was -21.3 versus predictions of -22.5.

 

                        Other

 

                          Mid December business cycle indicators.

                          https://econbrowser.com/archives/2024/12/business-cycle-indicators-as-of-mid-december

 

                          Inside the November retail sales figures.

 https://wolfstreet.com/2024/12/17/the-fed-needs-to-watch-out-to-not-throw-more-fuel-on-this-demand-retail-sales-accelerated-sharply-in-the-2nd-half/

 

                        Monetary Policy

 

The December FOMC meeting wrapped up yesterday. As expected, it (1) lowered the Fed funds rate another 25 basis points and (2) increased the hawkish narrative of its post meeting official statement as well as its ‘dot plot’.

https://www.zerohedge.com/markets/fomc-23

 

            Fiscal Policy

 

There is a new sheriff in town. Thank heavens. That’s the good long term news.  However, recall my earlier link to a study that concluded the corporate profitability was positively correlated to government debt. So short term, a shrinking deficit suggests shrinking profits.

              https://www.zerohedge.com/political/pork-city-johnson-tries-ram-through-insane-funding-package

 

            Recession

 

              Housing sector forecasting recession.

              https://bonddad.blogspot.com/2024/12/the-housing-sector-now-hoists-red-flag.html

 

              Catching down to the global economy.

              https://www.zerohedge.com/markets/global-conditions-portend-catch-down-america

 

     Investing

 

            How will the mother of all bubbles pop?

            https://www.ft.com/content/9a0da0d6-92b4-4034-ac25-7b4abcbb0bbe

 

    News on Stocks in Our Portfolios

 

Accenture (NYSE:ACN) declared $1.48/share quarterly dividend, in line with previous.

 

 

What I am reading today

 

            Quote of the day.

            https://cafehayek.com/2024/12/quotation-of-the-day-4862.html

                       

The health benefits of olive oil.

            No food or medicine can do what olive oil can do. Here's why.

 

            The most important conversation to have before you die.

            https://www.nytimes.com/2024/11/27/well/advance-care-directive-living-will-dnr.html

 

 

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