UPDATE 10 AM ET
Whiplash! The early selling was a shakeout.
Gold has met most of the targets we had, but there are still a few left for the short run. Meanwhile, we’re swinging higher with our mining picks.
Fed QE: $1.733B Coupon Purchase 2020-07-27
The laughably hopeless hope is that by propping up the corpses, the populace will discern some faint flicker of life in the decaying carcasses and return to their free-spending ways.Call it cultural synchronicity, but it increasingly feels like we…
Short term cycles are in down phases. There are a couple of clear parameters to watch for signs of whether this will get worse or not. Intermediate cycles appear to be topping out. Again, there are clear parameters to watch for confirmation.
But the long term indications remain bullish, with a brand new price and time projection for the bull market high. It won’t make bears happy, but our chart picks still have 4 shorts along with 7 longs. The bull is no longer a monolith, but it only takes a few big stocks to carry the market averages higher.
This Bubble has turned unstable. Chinese stocks reversed sharply lower after the U.S.’s shocking closure of China’s Houston consulate. Fundamentals and geopolitics do matter.
These are not numbers that are consistent with a robust rebound. In fact, they don’t indicate very much of one at all. IHS Markit’s flash PMI’s for July 2020 instead look way too much like the sentiment indicators in Germany and Japan. Though they are now back near 50, both services and manufacturing, that doesn’t […]
Corporates are reeling from the COVID19 pandemic impacts, yet stocks are severely overpriced by all possible corporate finance metrics. Until, that is, one looks at bonds.Over the 3 months through June 2020, average 10 year U.S. Treasury yield has been…
Sclerotic, hidebound institutions optimized for linear stability and permanent growth are simply not designed to adapt to non-linear change and disruption of permanent growth.Since the first news of pandemic in late January, I’ve been discussing potent…