The Morning Call
The S&P resumed its strong upward momentum, closing above its 100 DMA (now support), re-starting the clock on its challenge of its 200 DMA (now resistance; if it remains there through the close on Thursday, it will revert to support) and within a very short term uptrend. Its next resistance level is its prior lower high (~2800).
As you might expect with the Fed and the Bank of China turning dovish, the long bond continues to rise (rates down). It finished above both moving averages and in a very short term uptrend. If global liquidity is expanding, this trend should continue as long as inflation numbers are benign.
Is the Japanese bond bull market ending?
The dollar was off a nickel on Friday. Its chart remains strong, with UUP ending above both moving averages and in a short term uptrend. It did settle below the upper boundary of the November to present trading range, but not by much.
GLD rose ½% on volume, maintaining its strong performance. It closed within very short term and short term uptrends and above both MA’s (the 100 DMA is crossing above its 200 DMA).
In sympathy with Friday’s moonshot, the VIX was down over 7%, closing below the lower boundary of is short term uptrend (if it remains there through the close on Wednesday, it will reset to a trading range).
Another round of trade talks with China begins today---a hopeful sign that progress is being made.
The latest victims of Chinese IP theft.
Apparently, the ECB is about to join the stampede to QE.
***overnight, a Bank of Japan governor said that the BOJ was prepared to execute extra monetary easing if required.
The latest from Morgan Stanley.
Will the real world please stand up?
News on Stocks in Our Portfolios
FactSet Research Systems (NYSE:FDS) declares $0.64/share quarterly dividend, in line with previous.
Illinois Tool Works (NYSE:ITW) declares $1.00/share quarterly dividend, in line with previous.
Genuine Parts (NYSE:GPC): Q4 Non-GAAP EPS of $1.35 beats by $0.04; GAAP EPS of $1.27 misses by $0.04.
Revenue of $4.6B (+9.3% Y/Y) beats by $50M.
Medtronic (NYSE:MDT): Q3 Non-GAAP EPS of $1.29 beats by $0.05; GAAP EPS of $0.94 beats by $0.03.
Revenue of $7.55B (+2.4% Y/Y) beats by $20M.
This Week’s Data
December Japanese machine orders fell 0.1% versus November’s reading of unchanged.
Update on student loans.
Why so many Americans feel cheated by the student loans.
Update on mortgage debt.
New accounting rules will add $3 trillion to corporate debt.
Auto sales plunge in China.
China’s Silk Road initiative is starting to impact the Middle East.
What I am reading today
Update on cryptocurrencies.
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Disclosure: I am/we are long fds, gpc, itw, MDT.