The Morning Call--The Battle Is Coming
The Morning Call
9/10/20
The Market
Technical
The Averages (27940, 3398) rallied back hard yesterday; but not enough for the S&P to regain the lower boundary of its short term uptrend---hence resetting to a trading range. Plus, it ended right on its former all time high---a major support/resistance level. Nonetheless, I hate calling a reset on a day in which a powerful move takes place. But rules are rules. Still, those oft repeated negatives are fading; and the indices’ intermediate and long term trends are up. So, I am not changing my current operating assumption that the Market’s bias is to the upside long term---until QEInfinity/Forever either comes to an end or investors conclude that it has been, is and will be an economic disaster.
Gold bounced off a minor (July/August) support level though it still has a way to go to break the current trend of lower highs. TLT declined ¼%, but encouragingly, it has made a higher low after failing to make a lower high. The dollar fell; and its chart remains the ugliest of those indicators that I follow. All in all, nothing of informational value in the pin action of these indicators.
Wednesday in the charts.
Stocks Bounce Off Critical Support After Fastest 'Correction' From Record High In History
Fundamental
Headlines
The Economy
US
Weekly jobless claims were 884,000 versus estimates of 846,000.
Continuing Jobless Claims Disappoint As Part-Time Jobs Recover, Full-Time Lags
Month to date retail chain store sales grew at a very disappointing pace versus the prior week.
The July job openings report (JOLTS) showed openings of 6.61 million jobs versus expectations of 6 million jobs.
Job Openings & Labor Turnover: July 2020 Update
August PPI came in at +0.3 versus consensus of +0.2%; core PPI was +0.4% versus +0.2%.
International
Other
ECB keeps rates and QE unchanged.
ECB Keeps Bond Purchase Program, Rates Unchanged As Expected
In subsequent press conference, Lagarde said ECB not concerned about rising euro (weak dollar).
Saudi Arabia just crushed US crude oil prices, again.
Saudi Arabia Just Crushed U.S. Crude Oil Prices Again | The Motley Fool
Fiscal Policy
America’s fiscal follies (must read).
America's Fiscal Follies are Dangerously in the Red
Is the Keynesian spell breaking?
Is the Keynesian spell breaking? - TheMoneyIllusion
China
US businesses in China not heeding Trump’s call to return home.
Bottom line. The battle is coming.
"The Battle Is Coming" - Reality Vs Delusion
The latest from Stanley Druckenmiller.
Druckenmiller Slams "Absolute Raging Mania" In Stocks, Sees Inflation Hitting 10%
A bear with a cardboard box on its head.
A Bear With A Cardboard Box On Its Head
News on Stocks in Our Portfolios
What I am reading today
Quote of the day.
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