Morning Market report
Index's are doing the opening small pop and clearing the decks for the drop (from futures indications) to settle down towards slightly up to flat. NASDAQ is the best performer here as the earnings reports( :/ ) are fueling that rise as shorts rush to cover those too, double the buying pressure.
Remember shorting has an infinite loss potential as how high can it go right?. NASDAQ is quite a show as the "reports" are pretty comical- why would Goog have to buy that much stock right?
GDP numbers driving today(these were known as the futures were up slightly too). It's mostly credit but what is good is the personal spending and even though that is credit too, mostly, KEY POINT: it shows a growing confidence amongst "we the pepe's".
This does not change the banks untenable situation though, they are still fucked. As previouls warned several times: HAVE SOME CASH. You won't lose your money in the long term you just may not be able to access it for a period of time.
==DON'T GET CAUGHT OUT WITH THIS-better to put it back if you don't need it then go "oh fuck I wish I had some".
The bulk of the Fin. Media is spinning this as a failure(see the article from ZH on annual revisions in the headline portion-big issue imo) to achieve the 3% rate as set out by POTUS. It is true it did not hit that but it fails to account for the turn around from where we were at a year ago going into summer and fall-was not good.
The money shot for it is this:Investment was weak again in Q2, although personal consumption expenditures (PCE) was strong (increased at a 4.3% annual rate). The investment dropped because of the system's unwillingness to see the forest through the tree's.
Have to admit I would be a little skeptical of growth if I were not in here so I understand it but there has to be element of the system fighting to keep it's old ways here. Not all of it but not everyone on-board iykwim.
The other good thing is weak inflation, thhis is the fuel that the FRB is NOT getting and yet another reason they could "pause"-see a fight here for sure.
Treasury yields no likey this as they decided to play the swan dive (not huge drop but violent for sure). All those big boys who sold in the last few days are wishing they did not-HA HA!-values go up, yields drop.
You could see on the chart (Cap#3) that they were juiced upwards prior to the release so it had space to fall into-it stays above 2%. Do thhis with most financial vehicles. They have the control of that for sure.
Gold had a little pop on this too but still in the congestion area it has been in. Silver is closer to the high's it has recently seen and this is a ticking time bomb for the system. As already mentioned the longer it stays here the moar attention it gets.
Watch the mining stocks for a clue if a paper dump is coming on the COMEX-has always been a 'tell' but the recent drop last friday did not follow through. I expect this in silver and very surprised it has not habbened yet.
Earnings season is winding down(Goog announcing a $25b share buyback program….:/) and McDonald’s Corp beat quarterly sales expectations at established U.S. restaurants on Friday, as the world’s largest burger chain benefited from remodeled stores and new deals, including the 2 for $5 Mix and Match offer.
The company's stock, a component of the blue-chip Dow Jones Industrial index rose 2% to $219.39 in early trading.
Fed still has ‘green light’ to ease after second-quarter GDP
The Federal Reserve is still expected to cut interest rates for the first time in 10 years next week despite better-than-expected second-quarter economic growth, analysts said Friday, after the first official reading of U.S. GDP.
The FOMC, the central bank’s interest-rate committee, will meet next Tuesday and Wednesday. They will announce their decision at 2 pm on July 31 followed by a press conference by Fed Chairman Jerome Powell at 2:30 p.m.