The Closing Look

Stock Market Commentary:

Stocks rallied sharply on Friday after the Bank of Japan surprised the Street and took rates into negative territory and continued their QE (money printing) program. This is an aggressive move to help stimulate their market and boost their lackluster economy. Remember, Japan’s stock market just dipped into bear market territory two weeks ago when it fell 20% from its recent high. In the U.S., GDP slowed considerably in Q4 2016, growing by only +0.7%, missing estimates for 0.9%. The weaker than expected GDP reading may help the Fed keep rates near zero for longer than initially expected. Remember, Wall Street loves easy money so we are back in the environment where bad news is good news.

Gary’s Thoughts: Bad is good again…for now!

The Morning Look

Stock Market Overview: 

Stock futures are up Friday morning. Overnight, the Bank of Japan surprised the world and took rates into negative territory as they continue printing money to stimulate their lackluster economy. In the U.S., the initial reading for Q4 GDP was announced. Friday is the last trading day of the month and this has been one of the worst month’s in the market’s history!

Gary’s Thoughts:  Remember what we have said. Strip away all the noise and we think two Wednesday’s ago, sellers were washed out. We still believe that and think there is more time and price to work off the stretched, extended and oversold condition in the market. We will have our usual award winning weekend report on Sunday. Oh…and GDP stunk!

Economic Data:

  • GDP 8:30 AM ET
  • Employment Cost Index 8:30 AM ET
  • Chicago PMI 9:45 AM ET
  • Consumer Sentiment 10:00 AM ET
  • Baker-Hughes Rig Count 1:00 PM ET
  • John Williams Speaks 2:45 PM ET
  • Farm Prices
    [Bullet3:00 PM ET

Highlights Of The Day:

    • Donald Trump Is the Favorite of Moderate Republicans
      Gary’s Thoughts: We think he is still the chalk.
    • Russia Comments Tease Oil Market Eager for Any Glimmer of Hope
      Gary’s Thoughts:  Oil-laden countries need to do something. It starts with yapping.
    • Xerox To Split Company and Icahn To Get Three Board Seats
      Gary’s Thoughts: XRX ripe for this as its stock is huge under-performer for year.

The Closing Look

Stock Market Commentary:

Stocks rallied on Thursday after investors made their way past Wednesday’s Fed meeting and digested the latest round of earnings and economic data. Facebook (FB), PayPal (PYPL) and Under Armour (UA) were some stocks that rallied after reporting numbers on Thursday. Meanwhile, eBay (EBAY), Harmon (HAR), and Service Now (NOW) gapped down after reporting numbers. Economic data was mixed: Durable Goods fell -5.1%, missing estimates for a 0.2% gain. Jobless claims came in at 278k, beating estimates for 285k. Pending home sales rose to 106.8, just beating estimates for 106.7.  The Kansas City Fed Manufacturing Index fell to -9 which shows is not healthy.

Gary’s Thoughts: In the aftermarket, Amazon down about $85 after being up $50 today. We are writing this at 11 pm and just found out another maniac at the Bank Of Japan just went to negative interest rates. Japan has had easy money and 0% rates forever and it never ends. They keep repeating the same mistake over and over just like the rest of the central banks. Of course, the initial reaction was to buy stock as the yen tanks. But not sure this lasts. We remain off of last week’s lows but the assinine jagged action continues.

Don’t worry! All’s well! It’s only going to be $27 trillion of OUR debt!

SOURCE: http://davidstockmanscontracorner.com/campaign-2016-and-the-great-unmentionable-cbo-says-national-debt-to-hit-27-trillion-in-next-decade-gop-candidates-troll-for-more-defense-spending/?utm_source=ReviveOldPost&utm_medium=social&utm_campaign=ReviveOldPost

A few early notes!

We told you two things recently…that a low was put in on last Wednesday’s washout (for now…and in a bear market) but expected things to be jagged. The past four days of the Dow were +210, -208, +292 and -222…and now we walk into another gap to the upside. Yesterday, Apple affected things negatively. Today, Facebook affects things positively. Yesterday, Amazon and Google were yonked for $20, today they gap up over $20 in sympathy with Facebook.

Having fun yet! Amazon,Google, Microsoft still to report and thankfully, the Fed is out of the way…until next time!

 

The Morning Look

Stock Market Overview: 

Stock futures are strong on Thursday as the market does the usual about-face from whatever happens on Fed day!

Gary’s Thoughts: Facebook a huge help. It has helped the NDX but also enabled but Google and Amazon to get back the large losses from yesterday. Hey…you play this! Just remember, the low from last Wednesday is still in but recent action is almost impossible to gauge or game. There is still zero leadership except for a few defensive areas.  Also remember, the rest of the week is end of the month and end of a gross month.

As far as Facebook, those that know us know we love strong gaps to the upside off of strong earnings…but that is in bull markets. Bear market gaps tend to be different as they tend to be nothing more than n opportunity for big sellers to get out. We as always, will let the stock decide. Just keep those thoughts in mind. We have no position in the stock as of this second.

 

Economic Data:

  • Durable Goods Orders 8:30 AM ET
  • Jobless Claims 8:30 AM ET
  • Bloomberg Consumer Comfort Index 9:45 AM ET
  • Pending Home Sales Index 10:00 AM ET
  • EIA Natural Gas Report 10:30 AM ET
  • Kansas City Fed Manufacturing Index 11:00 AM ET
  • Fed Balance Sheet 4:30 PM ET
  • Money Supply 4:30 PM ET

Highlights Of The Day:

    • Stocks sell off hard after the Fed meeting
      Gary’s Thoughts:
    • BlackRock’s Fink Says 400 Energy Firms May Not Survive Cheap Oil
      Gary’s Thoughts:  
    • U.S. to Halt Blood Donation by Travelers to Zika-Affected Areas
      Gary’s Thoughts: Really!

The Closing Look

Stock Market Commentary:

Stocks fell hard after the Fed concluded its 2-day meeting on Wednesday. The Fed held rates steady but left the door open for a possible rate hike in the future. The market was looking for a more dovish stance whereby the Fed would signal that they are not going to raise rates anytime soon. Steeping back it is important to note that we are in the early stages of a bear market and the defensive stance Gary has told you about for months is front and center.

Gary’s Thoughts: Well…we told you to expect jagged…and jagged we are getting. Facebook will help things a bit tomorrow but not sure how much. We also get Amazon, Microsoft tomorrow and Google on Monday. But the bottom line, today’s high had better not be resistance already. Today’s high had not better be all this rally has. The market already looks bad enough.

The Morning Look

Stock Market Overview: 

Stock futures are down on Wednesday as the market digest’s Tuesday strong rally and waits for the Fed’s meeting later today. Gary has nailed this market for you perfectly.

Gary’s Thoughts:  Apple and Boeing will not help this morning but we still believe last Wednesday’s lows holds sway. Just keep in mind the word we used…”jagged” when talking about any further gains. Lots more earnings to come. 

Economic Data:

  • MBA Mortgage Applications 7:00 AM ET
  • New Home Sales 10:00 AM ET
  • EIA Petroleum Status Report 10:30 AM ET
  • FOMC Meeting Announcement 2:00 PM ET

Highlights Of The Day:

    • God and His Angels Can’t Fix Greece: Varoufakis
      Gary’s Thoughts: The country is bankrupt…covered up by issuing more credit cards.
    • The Surge in U.S. Mansion Prices Is Now Over
      Gary’s Thoughts:  As we have said, we believe you will see housing prices, especially rebubbled areas…peak!
    • New Drone Racing League Wants to Be the Next Nascar
      Gary’s Thoughts: Really!

Please watch David Stockman as he must be listening to our show!

SOURCE: http://davidstockmanscontracorner.com/david-stockman-on-cnbc-this-is-a-dead-cat-bounce-were-at-peak-debt-headed-for-recession/

The Morning Look

Stock Market Overview: 

Stock futures are down modestly this morning as investors digest Monday’s decline on Wall Street. Gary has been telling you the market has been VERY stretched to he downside and way overdue to bounce. So if it can’t bounce, look out below.

Gary’s Thoughts:  Well that was ugly. Today, it is about Apple after the close and the rest of the biggies NDX-types this week. Regardless, that was not a good Monday.

Economic Data:

  • FOMC Meeting Begins
  • Redbook 8:55 AM ET
  • FHFA House Price Index 9:00 AM ET
  • S&P Case-Shiller HPI 9:00 AM ET
  • PMI Services Flash 9:45 AM ET
  • Consumer Confidence 10:00 AM ET
  • Richmond Fed Manufacturing Index 10:00 AM ET
  • State Street Investor Confidence Index 10:00 AM ET

Highlights Of The Day:

    • So Yes, the Oil Crash Looks a Lot Like Subprime
      Gary’s Thoughts: Thanks for letting us know!
    • Draghi Says ECB Credibility at Stake in Hitting Inflation Goal
      Gary’s Thoughts:  You have no credibility!
    • Ben & Jerry’s Founder Announces New Sanders-Themed Ice Cream
      Gary’s Thoughts: Yes…you take a spoonful, government takes the rest.