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The Morning Look

ByGary Kaltbaum

Stock Market Overview:

Stock futures are down on flattish as we write this but have been all over the map throughout the night. This comes  after Wednesday’s late day reversal to the upside. Overnight, China injected $16.7B to prop up markets. That was their largest injection in three years and the second one this month. Even with that massive injection Chinese stocks fell on Thursday. Gary has been telling you the market has been VERY stretched to he downside and way overdue to bounce. Let’s see if the market can actually bounce here.

Gary’s Thoughts: Dow futures were up between 150 and 200 points last night but Asia reversed badly to the downside…thus our giving back of gains. We continue to be amazed at governments interfering with markets and thinking it is a good thing in the long run. We are of the belief that yesterday’s reversal could be meaningful in the short run but expect jagged action. If you want to know what jagged means, here are some synonyms: ragged,rough,uneven,irregular,sawtooth!

Jobless Claims 8:30 AM ETEconomic Data:

  • Philadelphia Fed Business Outlook Survey 8:30 AM ET
  • Bloomberg Consumer Comfort Index 9:45 AM ET
  • EIA Natural Gas Report 10:30 AM ET
  • EIA Petroleum Status Report 11:00 AM ET
  • Fed Balance Sheet 4:30 PM ET
  • Money Supply

Highlights Of The Day:

    • China injects $16.7B to stimulate their market. That was their largest injection in three years and the second one this month.
      Gary’s Thoughts: The more they interfere, the more they scare the masses. Get the hell out of the way and let markets find their real price.
    • Rumors spreading that Twitter ($TWTR) may be acquired.
    • Gary’s Thoughts: Someone who owns a lot of stock probably floating the rumor. 
    • Deutsche Bank Sees Fourth-Quarter Loss, Takes Additional Charges
      Gary’s Thoughts: More of that to come!