As we write this, the German Dax is up over 200 BECAUSE GERMANY SAID THEIR ECONOMY MAY CONTRACT THIS QUARTER. No…really. Very simple…the European Central Bank is going to lower rates again even though rates are already negative. Do not forget we are lowering rates. India lowered rates. Australia lowered rates. China is making Bernanke look like Volcker. On top of that, we are raising federal spending (debt) again.
Don’t ask us why this is good news for markets. We have been telling you for 10 years that markets are moving on easy money, easier money and easiest money in history. We are also getting some good reactions to earnings.
We could tell you we saw a little distribution last week. We can tell you we saw some failed breakouts. We can tell you we saw some leaders pulling back with a few breaking the 50 day. We can tell you MSFT gapped up on good numbers and sold off. We can tell you an important high beta name in NFLX gapped down and is still over-owned and 0ver-leveraged. We can tell you small and mid-caps continue to under-perform badly but:
145 companies of the S&P500 and 10 of the DJIA 30 are due to report this week…not to mention many others. That will be the story this week. We then deal with a Fed that will lower rates at the end of the month. The president again jawbones them this morning, hoping for bigger rate cuts than the fed may want. But the president says the fed is independent and the president once blasted Obama and Bernanke for their easy money. My…how things change once you are the head honcho, top dog, big cheese.
Fedheads now leaking that maybe a 1/2 point cut at end of July. Of course markets will go higher on this.
Gapping up a bit today after a nice comeback yesterday.
MSFT sandbags and beats number handily.
CRWD up $13 on more losses. $16 billion market cap on $300 million sales and nothing but losses.
The president tweeting the fed has rates too high. The same president who blasted Obama and Bernanke for keeping rates too low. Love this guy!
Futures flat. We love flat. We love a lot of days doing nothing as it sets things up better.
We are in earnings season. Earnings are ok…nothing special but we are getting a rate cut at the end of month. The dolts let us know again yesterday.
ASML another SEMI name with terrible numbers…gaps up $12 this morning. Go figure.
FINANCIALS reporting. Numbers ok…stocks are not really moving much.
TRANSPORTS strong again yesterday on crappy JBHT numbers but also stronger AIRLINES. AIRLINES showing good patterns. CSX will not help the cause this morning, down $5 on their crappy numbers.
Pay little attention to the numb skulls on both sides of the aisle calling each other racist. It is all a game of 3 card monte trying to take your eye off of the fact that both parties are again going to raise OUR debt ceiling as we head into the abyss of gargantuan government, massive debt and massive deficits enabled by a sick, twisted central bank business not only here but around the globe. Remember, you can critique opinion…you cannot argue with hard numbers.