Friday, November 14, 2025

The Morning Call--Repos locking up again

 

The Morning Call

Including four must read articles

 

11/14/25

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/big-reopening-vote-triggers-bloodbath-bitcoin-big-tech-rate-cut-odds-tumble

 

Note: the S&P broke below the uptrend off its May low for the second time in two weeks (last time, it recovered that support level the next day). Let’s hope there is a repeat. Although at this moment, today’s opening looks ugly. If we do get follow through to the downside, the next support level are: (1) the 50 DMA ~6687, (2) the 100 DMA ~6509, (3) the 200 DMA ~6145. Fears are centered around the (lack of) macro data and rising concerns about potential AI profitability.

 

                Thursday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

            The bull market is not over.

            https://talkmarkets.com/content/etfs/what-is-obviousis-obviously-wrong?post=536867

 

            Commodities have started to break out higher.

            https://www.zerohedge.com/markets/commodities-have-started-break-out-higher

 

            The VIX makes a higher low (however, it hasn’t made a higher high).

            https://talkmarkets.com/content/stocks--equities/vix-higher-low?post=536898

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                        International

 

The September EU trade balance was +E19.4 billion versus estimates of +E8 billion; Q3 GDP grew (2nd est.) 0.2%, in line; Q3 employment grew 0.1% versus 0.0%.

 

October Chinese YoY industrial production was up 4.9% versus projections of +5.8%; October YoY retail sales were up 2.9% versus +2.2%; October YoY fixed asset investments were down 1.7% versus -0.8%; the October unemployment rate was 5.1% versus 5.2%.

 

                        Other

 

                          Hotel occupancy rate increased 2.5% YoY.

                          https://www.calculatedriskblog.com/2025/11/hotels-occupancy-rate-increased-25-year.html

 

            Overnight News

 

The White House unveiled trade deals with Argentina, Ecuador, Guatemala, and El Salvador as part of an initiative to reduce food prices/ address affordability challenges for American consumers.

 

NEC Director Hassett said he expects to see 60k job losses due to the government shutdown, while he responded that the numbers they have are consistent with more rate cuts, when asked about inflation.

 

China’s unreported gold purchases could be more than 10x its official figures as it quietly tries to diversify away from the USD, highlighting the increasingly opaque sources of demand behind bullion’s record-breaking rally. FT

 

South Korea announced the factsheet with the US was finalized and President Lee said that US President Trump made a rational decision for the factsheet, while Lee added they agreed that investment in the US will be limited to commercially viable projects and that South Korea and the US will build a new partnership for shipbuilding, AI and the nuclear industry. Lee stated that the sides agreed on South Korea building a nuclear-powered submarine, and South Korea will strengthen ties with companies like NVIDIA.

 

            Monetary Policy

 

              Potentially poor employment numbers argue for a December rate cut.

              https://www.capitalspectator.com/weak-jobs-data-favors-another-rate-cut-in-december-maybe/

 

              The Fed balance sheet: the NY Fed wants more reserves.

              https://mishtalk.com/economics/the-feds-balance-sheet-is-6-5-trillion-the-new-york-fed-wants-more/

 

              Repos locking up again.

              https://www.zerohedge.com/markets/repo-locking-again-market-tries-force-feds-reserve-management-purchases

 

            Fiscal Policy

 

              The debt reduction playbook.

              https://bondvigilantes.com/blog/2025/11/the-debt-reduction-playbook-can-todays-governments-learn-from-the-past/

 

            Recession

 

              The next recession caution shoe may have dropped.

              https://bonddad.blogspot.com/2025/11/light-vehicle-sales-and-transportation.html

 

              Subprime auto delinquencies worst in 30 years.

              https://www.zerohedge.com/markets/subprime-auto-loan-delinquencies-top-1994-levels

 

            Tariffs

 

              The Supreme Court can’t mend US trade policy.

              https://www.bloomberg.com/opinion/articles/2025-11-13/supreme-court-can-t-mend-us-s-broken-trade-policy?srnd=homepage-americas&sref=loFkkPMQ

 

     Investing

 

            Five tailwinds for the Market.

            https://www.carsongroup.com/insights/blog/5-tailwinds-for-markets/

 

            Defining the Santa Claus rally.

            https://www.marketwatch.com/story/yes-investors-there-is-a-santa-claus-rally-no-he-isnt-coming-early-885ef555?st=iRcXgt

 

            Nuclear energy renaissance.

            https://www.advisorperspectives.com/commentaries/2025/11/13/investment-opportunities-advisors-nuclear-energy

 

            Quantum leaps in quantum computing.

            DEEP DIVE: Quantum Leaps For Quantum Computing?

 

    News on Stocks in Our Portfolios

 

Cisco Systems (CSCO) declares $0.41/share quarterly dividend, in line with previous.

 

 

What I am reading today

 

           

                        Ban the filibuster---but only for continuing budget resolutions.

            https://www.civitasinstitute.org/research/ban-the-filibuster-but-only-for-continuing-budget-resolutions

 

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