| | | | Call this a Daredevil Market.
There are worries about inflation, the continuing debt crisis in China, a supply chain crunch, and an uncertain political situation in Europe's biggest economy...
But the market defied all of that last week and kept soaring ever higher.
Of course, that was after a terrifying dip last week at this time...
And certainly there are plenty of worries. Dr. Kent Moors reports in today's Classified Intelligence Brief that the Evergrande debt crisis isn't over.
Nonetheless, while corrections are inevitable, a wholesale contraction is not. Investors feel confident that the Fed has inflation under control and that easy money policies are being used responsibly.
Attention now turns to Congress, where, as soon as today, trillions of dollars in federal spending are ready to be unleashed. The market has long priced in an infrastructure bill, but the details (including possible tax hikes) will determine everything.
Get ready for volatility.
Get ready for opportunity.
Keep moving, |
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| | | | | | | Chris offers his thoughts on the state of the market. Will we continue the slide, or see a quick recovery from the gap down? He discusses how little the news actually has to do with your trading when you use chart analysis.
Chris also gives his thoughts on China's financial policies and the potential effect on world markets. We'll learn how to determine the right time to enter on pull-backs like these and when it's in your interest to short a rally upward.
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| | | | | German Elections Unclear, Platinum Coin, Pelosi Promises
- The Time Of Merkel Is Over. The Time Of The SPD Has Come. - Well, maybe. Angela Merkel will be stepping down as chancellor (eventually), but it's not clear who really won the German elections. The center-left SPD (Social Democrats) have the lead, but don't have the overwhelming majority to form a government. Indeed, CDU (Christian Democratic Union) leader Armin Laschet says he will form a government, even though he just ran the worst CDU campaign in recent history. Smaller parties, especially the Greens and the liberal FDP, are now emerging as kingmakers. The nationalist AfD retained its strength in the east. However, it will almost certainly be excluded even from negotiations.
- A $1 Trillion Platinum Coin? - The Republicans are vowing to block a Democratic attempt to raise the federal government's debt ceiling. This risks a default. Either one party or the other must blink or there will be fiscal ruin, but few expect it to go to the brink. If it somehow does... some are seriously proposing a legal workaround if Congress doesn't act. Treasury Secretary Janet Yellen could theoretically have the Treasury mint a $1 trillion platinum coin and use it to "retire" federal debt at the Fed. And yes, this is legal, and yes, it specifically has to be platinum.
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| | | - I N T E N S I T Y - Speaker of the House Nancy Pelosi tapped into her inner football coach, telling her caucus that it will be a "time of intensity" as the Democratic majority targets three huge pieces of legislation. The Democrats must raise the debt limit, pass a bipartisan infrastructure bill with about $1.2 trillion in spending, and take up a Democrats-only bill that has about $3.5 trillion for new social programs. However, Speaker Pelosi said it was "self-evident" that the latter bill will ultimately contain less than $3.5 trillion if it finally becomes law.
- Markets Prepare For China Data/COVID End - Asian markets were mixed in overnight trading as investors wait for China's industrial profits data to be released. The specter of the Evergreen Group's debt crisis also looms over the Chinese market, but the company has so far avoided default. The picture was more optimistic in American markets. Pfizer CEO Albert Bourla predicted a return to "normal life" within a year, though with the addendum that everyone will probably need annual coronavirus vaccine shots.
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| | | | | Did you miss Options Coach Chris Hood's landmark event? Chris does a deep dive into his cornerstone strategy that has been paying him every week for years...
Click below to watch now.
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| | | HOT SPOTS: What's Going on in Geopolitics
- Turkey Buying Another Russian Air Defense System - Over the course of world history, Russia and Turkey have not exactly had a calm relationship. However, Turkey, nominally a NATO member, is moving closer to Vladimir Putin's Russia despite American warnings. Turkish President Recep Tayyip Erdoğan said that his country was moving forward with the purchase of a new Russian air defense system.
- Hundreds Of Russians Protest Election Results - President Putin's United Russia party won a decisive victory in recent elections, but not all Russians are accepting the verdict. About 400 people protested in Moscow against the election results, calling them rigged. Don't look for too much American support of this opposition though - the demonstration was organized by the Communist Party.
- Taliban Hangs A Body From A Crane - The Taliban is not being shy about the grim new order that is being enforced in Afghanistan. Four men were killed by police after they took part in a kidnapping. The de facto government of Afghanistan then publicly displayed the four bodies, including hanging one from a crane in a city square in Herat.
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| | | CUTTING EDGE: What's Happening In Tech
- Google Takes Less Of A Cut - With polls showing an overwhelming majority of Americans favoring more regulation of Big Tech, Google is quietly moving to appease developers. The company announced it will only take a 3% cut (down from 20%) when customers buy software from other vendors on its cloud marketplace. The issue of how much control cloud marketplaces and app stores hold over developers is at the center of many debates in tech right now, including the ongoing legal battle between Apple and Epic Games.
- Oral Treatment On Way For COVID-19 - Though data suggest existing vaccines have been broadly effective in preventing transmission and lessening the symptoms of COVID-19, that's small comfort to those who are infected, whether they are vaccinated or unvaccinated. Thus far, there are still few treatments. However, at least three oral antivirals are being studied for treating existing cases of COVID-19. Results might come as soon as this year.
- Nature Finds A Way - Wing, operated by Google's parent company Alphabet, has been forced to delay its new home delivery service. The problem - ravens guarding their nests keep attacking and downing the delivery drones. Magpies, hawks, and eagles have also been known to take down robotic delivery vehicles.
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| | | | | | | | Quoth The Raven: "Reject Modernity, Return To Tradition" |
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| | | FOR YOUR CONSIDERATION
"Thus far, most analysts point out that foreigners have limited exposure to the unfolding debacle. Unfortunately, that will not remain the case as this crisis unfolds."
If anything can bring down this Teflon stock market, it's this. The Evergrande debt crisis appeared to have been resolved last week. However, Dr. Kent Moors says that the pain may be just beginning - and the damage won't be limited to China.
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| | | | | | | Missing the daily trade insights from Before the Bell? No worries!
Corey is still providing these ideas through his daily newsletter where he provides in-depth technical analysis into some of the biggest opportunities in the market. And it costs you nothing.
Click Here and Sign Up to Before the Bell for FREE |
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