We’re All Gonna Die! (XLK,GM,F)

We’re All Gonna Die! (XLK,GM,F)   Just a moment to recap exactly where we are and how we got here.   To begin, our bull market began in March, 2009 and, despite the odd shimmy and shake, it continues apace, spurred ever higher by the machinations of a giddy central bank that refuses to take bear for an answer. This past fall, with the election of Snidely Whiplash, the market kicked into overdrive, beginning what we believe is the final blowoff top to the bull that began in either 2009, 1981 or 1933, depending upon how cataclysmic your worldview.   But that’s for another time.   Today, we find ourselves at a crossroads.  Not a…

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Dancing in Detroit (F,GM,HYG)

Dancing in Detroit (F,GM,HYG) What’s more American than a monster truck hoedown that pits a Ford F-150 against a Chevy Silverado.  (Apologies to Ram fans, of course.)   American carmakers are still a force to be reckoned with 100 years after Mr. Ford’s assembly line thrust Detroit into the center of the industrial world.   And though we may be at the dawning of the electric age for vehicles, Ford and GM still have market caps that come close to $50 billion.   Why?   Because they sell a whale of cars.   A look at the chart below offers an idea of the types of numbers on offer from both companies. A company that…

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WAR! GOLD! DICTATOR! TRUTH! (SLV,GLD,F)

As we approach election day, the question of how the market will react to the ‘will of the people’ takes on new significance.   As of today, equities are moving in a muted, sideways fashion, uncertain of both the outcome of the contest and exactly what should play out beyond.   There are four distinct possibilities, of course, that could be triggered once the results are known.   A Republican win, and a breakout higher, or lower.   A Democrat win, and a breakout higher or lower.   Whatever happens, though, it’s almost certain the market will not continue its sideways grind much more than a day beyond the polls’ closing.   It’s also looking…

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The Road to Hell is Paved with a Ford (F)

Market direction for the next few days is uppermost on traders’ minds, as the action of last week, and particularly Friday, began pushing the technical calculus toward the bears.   To that end, we’re going to take a look now at a few charts to see where we stand in the macro realm.  After that, we’ll attempt to drill down into a few sectors that offer what we believe is a choice trade into the next sixty or so days.   We’ll begin with the Dow and S&P 500, both of whose charts are developing similar bearish patterns.  Have a look.   This is the Dow. A few things to be aware of here.  …

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New home sales up, Ford (NYSE:F) reports drop in profits and Microsoft (MSFT) announces strong quarter

Markets were headed slightly higher on Friday after it was reported that new home sales in the U.S. hit a six-year high in September. The Commerce Department announced that home sales were up 0.2% to a seasonally adjusted rate of 467,000 units. A reading of this level has not been recorded since July 2008. They also reported that August’s data was downwardly revised to show 466,000 units from the previously reported 504,000 units. Despite the large gain, the reading still missed analysts’ expectations of 470,000 units. New home sales have an 8% affect on the overall housing market. When compared with sales from last year, September’s reading was up 17%. Gennadiy Goldberg, an economist at…

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Consumer sentiment hits 14-month high, GDP comes in higher and Ford (F) announces new recall

Markets were heading higher on Friday after consumer sentiment reached a 14-month high in September. The Thomson Reuters/University of Michigan’s final reading for consumer sentiment this month came in at 84.6, up from August’s reading of 82.5. This is a level that has not been reached since July 2013. Economists had been projecting a reading of 84.7 for the month. The survey director, Richard Curtin, said, “The main factor promoting greater confidence in September was more favorable prospects for the domestic economy as well as more favorable personal income expectations.” The reading for the month reveals that people are predicting an increase in consumer spending over the next year as well. The section of the reading that measures…

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U.S. Consumer sentiment hits 14-month high, Darden (DRI) posts loss and Ford (F) announces recall

Markets were heading lower on Friday morning after U.S consumer sentiment levels hit a 14-month high. The Thomson Reuters/University of Michigan’s preliminary reading for September showed a rise to 84.6, which is the highest level recorded since July 2013. This was also up from the 82.5 reading last month. The data beat out analyst’s expectations of 83.3. The section of the report that shows consumer expectations made a jump from 71.3 to 75.6. There was a slight drop in the reading of current economic conditions, which fell to 98.5 from the 99.8 reading last month. Director of the survey, Richard Curtin, said, “All of the early September gain was in the Expectations Index, while consumers…

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U.S. PPI July reading inches up, Coca-Cola (KO) to take large stake in Monster (MNST) and Berkshire Hathaway invests in Charter (CHTR)

Markets were heading slightly higher on Friday after U.S. producer prices were up mildly in July. The Labor Department said that the drop in energy and goods offset rising food prices. The PPI reading came in 0.1% higher last month after a 0.4% rise in June. The gain was on par with analyst’s expectations. In the past 12-months, there has been a rise of 1.7% in producer prices. Shares of Monster Beverage Corporation (MNST) were skyrocketing after Coca-Cola (KO) announced that they would be paying $2.2 billion for a large stake in the company. The cash payment will give Cola a 16.7% stake in the Monster. Coke will then be able to have two members…

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