The Morning Look
Market Update:
Stock futures are higher ahead of Thursday’s open as the market has been on in rally-mode all week.
Gary’s Thoughts: We repeat from last night: What happened to the crash? What happened to the 900 point futures drop? The scare tactics did not work just like it did not work with Brexit. Outcome…massive one way, one day trade in defense, industrials, insurance, financials, rails, biotech, drugs, steel, metals/mining and other economically sensitive areas. All these areas are perceived to be the beneficiaries of a lower tax, less regulation environment that looks to be coming out of a Trump administration…and quickly. We found dozens of high volume breakouts in these areas. THE QUESTION: Will they be one day wonder moves? Quite often, news events like this are just that. Our tactics…let them prove themselves. Taking off the fundamental hat…TECHNICALLY, they are simply big base breakouts on volume. FUTURES ARE HIGHER FROM THE MOMENTUM YESTERDAY. Markets caught flat-footed as pundits everywhere called for a crash. When futures were way down, Nobel prize winner Paul Krugman said markets will never come back. We love political hacks here who will say anything for their team.
Economic Calendar:
- Jobless Claims 8:30 AM ET
- James Bullard Speaks 9:15 AM ET
- Bloomberg Consumer Comfort Index 9:45 AM ET
- EIA Natural Gas Report 10:30 AM ET
- Treasury Budget 2:00 PM ET
- Fed Balance Sheet 4:30 PM ET
- Money Supply 4:30 PM ET
Highlights:
- Tuesday’s massive reversal was the largest since 2008
Gary’s Thoughts: Keep in mind…the reversal was from the futures…not during the day trading. - Dimon Says U.S., Europe Must Heed Voices of Frustration
Gary’s Thoughts: We have no clue what that means!
TO me the rise in volume reflects that the Gov. freed the market! All the Media garbage is just garbage!
I still think the market has to fall big before it becomes attractive again.
Luke Skywalker holds a conversation with Yoda:
Question dear Yoda: “Why is the stock market going up, when the dollar is in a rally ?”
Yoda answers: “Because (young sky walker), the banks are in a rally, and when the banks rally, the stock market follows the banks higher.”
Question Yoda: “How can the bank’s stocks up in the face of a rising dollar, and higher interest rates ?”
Yoda answers:” It’s the treasury bond.” “As the price of the bond falls, the yield goes higher, and higher interest rates make for greater profits for the banks; and,, (Yoda adds ), as the banks stocks go up, so follows up the stock market higher.”
Young Luke asks: “Please Yoda, How can profits for banks go higher, when higher interest rates slow lending, and reduce bank profits ?” “Shouldn’t bank profits fall with increased interest rates ?”
Yoda answers: “Yes Luke, the force flows strong within you, butt,,,,,,, that was old economic theory, no more.” “It’s the tricky sneaky Jews…” “The Jews …are…. “The Empire”, and the Jews play dirty financial tricks to keep themselves rich, and in global power .”
Young Skywalker asks: “What was the latest dirty trick the Jews pulled Yoda ?”
Yoda Answers: “When the big financial crash hit, the Jews at the Fed, loaned the Jews at the banks…. zillions and zillions of dollars,, at zero percent interest rates.” “The Jews at the banks then deposited the money into the Jew controlled the stock market, ( driving the market up ) and with the rest, the Jews at the banks placed it on deposit at the fed.” (The Jew banks, loaned,…. the loans, …back .to the Jews at the fed ) ………at an interest rate !”
Yoda continues : “Young Luke, as interest rates go higher, the interest, paid …by the fed,… to the banks, … on the money,…. on deposit,…. at the fed, … goes higher; increasing the profits for the banks.”
“As a result, as interest rates rise, profits for the banks go higher; the banks stocks go higher; and rising bank stocks pull the stock the market up, …… allin the face of an overbought market condition, …..a dollar rally, and …..increasing interest rates.”
Young sky walker : “Tricky bastards those Jews, you are very wise Yoda.”
Yoda: “The force begins to flow inside you young Luke.” “Soon you to will become Jedi.”