US equities began the week on a broadly positive note, the SPX printing a new hist’ high of 5871, and settling +44pts (0.8%) to 5859.
sp’weekly1b
Summary
SPX: structure of an ascending wedge has been broken above. Weekly momentum is increasingly positive, as the bears appear set to remain powerless ahead of the election. The only s/t concern is a geo-political wild card, especially Israel/Iran.
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Looking ahead
Tuesday will see Empire State manu’
Earnings: $WBA $UNH $C $BAC $JNJ $PGR $SCHW $GS $PNC $STT $UAL $IBKR $JBHT $SGH $PNFP $HWC $EPAC $EQBK $OMC $FULT
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Final note
WTIC $350 sounds like Krazy talk, but then… we’re on planet Krazy. What should be clear, even $100+ sustained oil would be a major problem for the US/western economy.
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We’re still in the early phase of drone warfare. Drones are cheap, and even a few dozen of these would be enough to overwhelm any anti-drone missile battery.
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The Judge and guest Ritter on Israel and Ukraine.
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Regardless of ‘nukes’, Israel appears set to attack Iranian energy facilities. The market’s complacency on that alone is bizarre.
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The notion of a US debt default is stupid… but further deficit spending will inherently be inflationary, and reduce the purchasing power of the dollar.
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Sleepy Monday
Despite a new historic high for the SPX… it was a pretty sleepy Monday. Tuesday should be more dynamic, not least with a wheel barrow of earnings. I just hope I see the sun on Tuesday… as just two days of grey horror was difficult enough.
Goodnight from London