Weekend March 31, 2019
Stocks and Oil at Resistance
There is not much new to report on oil and stock prices. Each has tracked the other. Oil has just poked over $60 as I write this morning. Stocks measured by the Dow Industrials are still fighting resistance at 26,000. The Transports and Russell 2000 are bouncing after sell-offs. That may be what is needed to fuel a rally higher.
However there is quite a bit to report on the social mood front, and most of it is negative.
Welcome to the 50th anniversary of 1968’s hit movie Bullitt starring Steve McQueen in his infamous chase scene around San Francisco. His dark green Mustang has enjoyed several revivals with Ford issuing ‘Anniversary Bullit Editions’ in the same color scheme. Each time the vehicle release timed a top in the stock market, just as happened during the 1968 movie. Will history repeat?
Negative mood finds a home in horror movies. This was the case for the Depression era Frankenstein and Dracula, 1973’s Exorcist, and again today. It, a two-part horror movie based on the Stephen King novel cost $35 million and grossed $120 M its first weekend in 2017. Part II debuts September, 2019. US, a story of a family on vacation encountering a sinister parallel of themselves, has already done $70 M in its first couple of weeks release. The film’s director, Jordan Peele, is reviving The Twilight Zone for CBS this next Monday. Twilight was not horror as much as paranormal. If only we could bring back Rod Serling and his writers.
In what should be an upbeat event, Tim Burton’s release of a new version of Dumbo is deemed Bad News form the Big Top by Joel Morgenstern. He notes a grim tone and a dead soul for what was originally a joyful movie.
FX debuts yet another television vampire series next week, What We Do in the Shadows. The public can’t seem to get enough from True Blood to the Walking Dead.
Meanwhile a truly ‘grim tale’ is playing out in an unlikely forum, the Austin, Tx Ballet. Grimm Tales recounts three stories. I won’t recount stories but this is not the Disney Snow White you remember. The appearance of horror in ballet is noteworthy.
Bond yields are falling across the globe with German yields negative again. This is a sign of fear, an inverted yield curve, not confidence.
Nancy Pelosi cannot control the negative elements of her party still contending cover-up and collusion, no matter what the Mueller report says. Serious Democrats charged with winning are realizing the public has no idea of their agenda, according
to a Politico survey.
No wonder stocks are having a tough time.
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