Hey everyone, we are seeing many conflicting signals across multiple markets as price action edges closet to all time highs. I am also seeing more dire warnings hit my end box that the world and the financial markets as we know it, will come to an end in a most brutal longer term sell off. We do know that eventually either the bulls or the bears out there will take control and move prices accordingly. For now, we have a number of key events coming up that could provide more lift the price action; –the FED Rate Cut and a Phase I Trade deal signature could lift price action to all time highs but we still must be careful…
Weekly Sound Bites:
• This past week the S&P just eked out a gain with the DOW falling just a bit as most investors are contending with a mixed bag of Q3 Earnings while overall Global Economic Conditions continue to slow making it a bit harder to discern the difference between the signals and the noise…we are seeing most companies topping analysts’ expectations, which are very low to begin with…
• We are seeing business activity around the World slowing as we just saw US orders for durable goods slipping in September…with the GM UAW Union Strike hopefully resolved and if Boeing’s 737Max issues are resolved this will help boost durable goods orders…we are also seeing near stagnation in business growth across the Euro zone with the China-US Trade Issues although word came out showing the both China & the US are at least still on track to complete this Phase I initial trade deal in a few more weeks…
• Companies like PayPal and Microsoft has shown strong earnings we’ve seen Amazon provide an earnings miss with expenses rising faster than expectations; -mostly to create one day deliveries for their Prime Customers…and in the Home Repair Business companies like Home Depot and Sherman Williams have seen very solid growth leading many indexes higher are forecasted to see some weakening of growth over the next year…
• BREXIT impasse continues to weight on the U.K. markets with uncertainty remaining very high…we’ve seen the Pound loosing over 13% against the USD and their economic growth has fallen…those companies in the U.K. that have most of their revenues generated within the U.K. borders are off 25% more than those companies where revenues are more global in nature…Boris “Bulldog” Johnson is seeking to hold a snap general election to build a larger base in Parliament to help him get the BREXIT deal across the finish line…But even this snap election could be in question since “Bulldog” Johnson needs two thirds support in the Parliament to move forward…so all we can do is stay tuned…
• And finally, the ECB running the Eurozone concluded “Super” Mario Draghi’s final meeting with nothing being done; rates stay 50 bps below zero and no other changed…and now it will be under new leadership with Christine “Queen Bee” Lagarde who was the head of the IMF….but one thing is clear for the ECB voting members; a very divided group with some favoring more stimulus and others want this to come to an end…and most all of them wants to see more fiscal policies from countries like Germany…we will see how this all plays out…
Weekly Round-Up:
Don’t Be A Rat Brain Trader – Be the Red Striped Zebra
Trade Smart !!
Hpb
