Market Commentary

» Posted by on Jul 24, 2019 in Announcements, Shop Talk, Uncategorized | 0 comments

Stocks bulls are happy to hear that trade talks with the Chinese will soon start back up as U.S. negotiators say they will be traveling back to China in hopes of finding more common ground.

U.S. corporate earnings have also been a bit better than many had been forecasting. One traders analogy, was that a wall of massive clouds have been in the longer-term forecast for a while but the storms have just never fully developed. I would concur with that perspective.

There’s been a lot of uncertainty and fear just out on the horizon but the clouds seem to break up as they move overhead. 4

Across the sea, Boris Johnson has been elected the new prime minister of the UK, with promises that he will get Brexit passed on October 31.

Here at home, for the first and perhaps only time, former special counsel Robert Mueller will answer questions about his investigation of Russian interference in the 2016 election and whether he found any direct obstruction of justice. From what I understand, Mueller will testify before the House Judiciary Committee beginning at 7:30 am CST, and then before the House Intelligence Committee starting at 11:00 am CST.

Questioning in the first three-hour session will largely focus on obstruction of justice, while the second two-hour session will focus on Russian interference with the 2016 election

I’m not looking for any new bombshells but rather a chance for the media and others to set off a lot more fireworks.

The market might flinch a bit, but to this point has continually shrugged off all political posturing.

Corporate earnings will continue today with AT&T, Boeing, Caterpillar, Cerner, Facebook, Ford, Hilton, PayPal, Tesla and Xilinix.

Thursday we get earnings from big tech names such as  Amazon and Google. Friday, traders will digest the release of U.S. Q2 GDP data.

Next week will be all about the Fed and the first interstate’s rate cut in over a decade.

Staying very conservatively bullish but with 50% in cash and on the sideline. I could certainly miss a melt up higher, but I’m wanting to be cautious during August, September and October. 

What do some Investors Think About the Stock Market? The surge in safe-haven asset prices suggests that some investors think that central banks’ decisions to ease monetary policy isn’t necessarily a good thing. Gold prices are hovering near their highest level in six years as the prospect of easier monetary policy across the globe burnishes the allure of owning the metal. Other commodities may soon follow. The price of silver, as measured by futures contracts traded on the New York Mercantile Exchange, has surged by 8.3% over the past two weeks. This may be a sign that gold’s impressive rally over the past year—its price has gone up 16%, compared with roughly 6% for the S&P 500—is finally spreading to other precious metals and perhaps eventually to other commodities (Source: The Wall Street Journal) 

 

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