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The Morning Look

ByGary Kaltbaum

Market Update:

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

Gary’s Thoughts: We wrote at the close yesterday: “Put buying spiked indicating heavy fear and bearishness. It is end of quarter as well as pre-holiday. And…the market is about as stretched and extended to the downside in 2 days as we have ever seen…so would not be surprised to see some relief back up. It would be quite normal. We cannot begin to tell you what kind of damage we have seen in foreign markets affected. Wow!”

AND THIS MORNING…we get the obligatory big gap to the upside. Central banks are coordinating. The G-7 is talking. All the people that have caused the massive debt, leverage and deficits are now going to mend things. Feel better? Just remember, on a short-term basis, at the close yesterday, things basically could not get any worse (well maybe), thus we rally back up some. Do not forget, we are end of quarter, pre-holiday.  We will know a lot more on how this nausea and how this nonsense bounces. DON’T BLINK! Just remember…the only goal by those in charge is to keep markets from tanking!

Economic Data:

  • GDP 8:30 AM ET
  •  Corporate Profits 8:30 AM ET
  • Redbook 8:55 AM ET
  • S&P Case-Shiller HPI 9:00 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
  • 4-Week Bill Auction 11:30 AM ET

Highlights:

  • Cameron Rejects Repeat Brexit Vote
    Gary’s Thoughts:  You never know with socialists.
  • S&P Rating Agency Cut U.K.’s Rating by Two Notches
    Gary’s Thoughts: To our eyes, that is nothing more than…”here’s what you get for being stupid!”