Required Reading

Chart Of The Day: Clinton Global Graft Initiative

Chart of Day 150425-clinton-global-graft-initiative

Short notes on market!

By Gary Kaltbaum-June 29,2016
After scanning Monday night, we came to a simple conclusion about Mr. Market. We thought that markets were stretched and extended to the downside beyond the beyond and that the end-of-quarter window dressing (illegal) and the pre-holiday trading would get the market rallying back up some of the nasty drop. So…two big gaps to the downside and two big gaps to the upside have markets getting back a damn good amount of the ugly…which now calls into question whether the drop was an out of position, not expecting, total surprise which caught everything everybody off guard. We suspect there is a chance that that’s all there is to the reaction to the event in the U.K. and suspect markets are just back into the range they have been in for a very long time. (You didn’t really believe all the scare tactics?) After all, the market’s modus operandi the past couple years has been big, nasty, quick drops and than pixie dust action back up.
Before the “Brexit,” the Dow and S&P were close to the tips and close to actually moving out of range. There is still plenty of work to do but amazingly, we are quickly getting back up there. Keep in mind, most other indices are much weaker. We suspect we will soon go into backing and filling mode as the massive resistance is again ahead. Brexit schmexit!

Listen To Tuesday’s Investor’s Edge Radio Show: Stoolander Edition 06/28/2016

Highlights:

  1. Market Wrap
  2. Gary Breaks Down Tuesday’s Rally For You
  3. Find out What Gary Is Focusing on Post-Brexit And What It Means For Your Bottom Line

The Morning Look

Market Update:

Stock futures are up ahead of Wednesday’s open as the market is bouncing from oversold levels and investors digest Friday and Monday’s steep sell-off.

Gary’s Thoughts: And another gap to the upside. Wasn’t the past few days fun? As we said, end of quarter, pre-holiday, massively stretched and oversold and a big dose of bearishness will get the market to rally back some but just letting you know, we are reading a little too much that everything is back to being fine.

Economic Data:

  • MBA Mortgage Applications 7:00 AM ET
  • Personal Income and Outlays 8:30 AM ET
  • Pending Home Sales Index 10:00 AM ET
  • EIA Petroleum Status Report 10:30 AM ET
  • Farm Prices 3:00 PM ET

Highlights:

  • Awful Terror Attack at Turkey’s Airport!
    Gary’s Thoughts: Those that do not value their own life have to be destroyed before they destroy.
  • EU Chiefs ‘Held Hostage’ Tell Cameron to Lay Out Brexit Plan
    Gary’s Thoughts: EU chiefs are morons.

The Closing Look

Stocks rallied on Tuesday as the market bounces from deeply oversold levels. Remember stocks have fallen in each of the past 3 weeks and are now bouncing from oversold post brexit levels. Before the open, the government said, the U.S. economy grew at a 1.1% rate in the first quarter of 2016, beating the last estimate of 0.8%. Even though GDP inched higher it was still the third consecutive quarter of slowing output: Q1 2016: +1.1%, Q4 2015: +1.4%, Q3 2015: +2%, Q2 2015: +3.9%. Stocks rallied across the globe as fear eased regarding #Brexit. Just before the close, two suicide bombers blew themselves up at an airport in Turkey.

Gary’s Thoughts: As we stated yesterday, end of quarter, pre-holiday, massively stretched and oversold with a big dose of bearishness insures a rally. As usual, rally is stronger than one would expect.

Oil Rallied on Tuesday on Post #Brexit Bargain Hunting, Norway Strike @FoxBusiness

http://www.foxbusiness.com/markets/2016/06/28/oil-rises-on-post-brexit-bargain-hunting-norway-strike.html

Volkswagen Will Pay Diesel Owners Up to $10K, Offer Buybacks @FoxBusiness

http://www.foxbusiness.com/features/2016/06/28/volkswagen-will-pay-diesel-owners-up-to-10k-offer-buybacks.html