PRE MARKET POWELL

Mystery last minute pop yesterday gives strong NASDAQ day while DOW was down…no biggie. Futures down this morning when Powell told the world they are lowering rates at the end of the month. Futures now up nicely with major large cap indices opening into new highs.

So…GDP in the 3s, unemployment in the 3s, major indices at highs…”let’s lower rates!”

We have been telling you who these people are forever. They are proving us right. Unfortunately, all these moves are enabling massive amounts of debt across the world to the tune of $250 trillion with no end in sight.

Seeing 50 year Italian bonds floating at 2.8% even though Italy has debt problems. It was oversubscribed by miles.

Seeing junk bonds in Europe with negative yields.

100 year bonds (the most risky because of duration) are soaring as yields continue to implode.

Just don’t worry because there are no bubbles.

 

ANOTHER TAX IN FRANCE…JUST BECAUSE

SOURCE: https://www.independent.co.uk/travel/news-and-advice/france-eco-tax-flights-tickets-airlines-planes-climate-change-a8996741.html

PRE MARKET

Futures are down after a down day. But we are not seeing much in the way of damage. In fact, there were a few growth names up nicely yesterday.

BUT…if we have multiple days where the A/D is bad, the complexion of patterns could change so stay tuned.

Next week, earnings start up in a big way. Many say earnings will be poor but does the market already know this? Keep in mind, it is a lock that Powell lowers rates at the end of July…and that question is the same. Does the market know it already?

 

PRE MARKET

After a very good reversal Friday, market gives it back on the gap this morning as Asia weak and yields are falling again.

If one was looking at stocks, one would think the economy and earnings are accelerating. If one was looking at bonds, one would think all heck is going to break loose.

We are finally back home and will keep this short.

 

A few notes:

AAPL gets the sell rating this morning with a $150 price target.  Blasphemy. But the fact is AAPL numbers not very good at all.

GOLD and GOLD stocks reversed decently from weak open Friday. We are in hopes it sits for a bit or pulls back even more. We remain of the belief the gap breakout was real.

My Mets suck.

My Knicks suck.

Congrats to the women’s soccer team!

PRE MARKET/FAKE JOBS REPORT

The fake jobs report better than expected so rates backing up decently today…calling into question how much rate cutting will be done…hitting markets in the pre-market. The 10 year has backed up 0.86 to 2.039…still ridiculously low. GOLD sinking on this news.

Instead of being long winded…we’ll just end it here and send you full report over the weekend. Remember, any pullback this second is a no biggie. If markets are to go higher, pullbacks are warranted and needed.  But if biog distribution shows up, that will be another story we will tell you about. Hope you had a great holiday.