Tuesday Nov 10 2020
We wrote about negative mood this weekend. But the stock market had other ideas posting a 1600+ point open Monday.
It gave back half that by the close. And other indexes either did not make a new high, Russell, or like the NDX actually closed lower.
the early Sept high is now seen as wave three, an A B C correction took to the lower trend line for wave 4. And Wave 5 ended with the sort of excitement one would expect from a ten year rally. But internals were not as strong as one might think.
Interest Rates on the Rise
FED Chair Jerome Powell is on the cover of Barrons. Confidence is so high that he is in control of interest rates, Biden is likely to re nominate him. But this chart shows a big rise in long term rates. I doubt AOC knows much interest rate history preferring Modern Monetary Theory that the US can print all the money it wants. A continued rise in rates, which is what is happening, will make the multi trillion dollar spending packages of AOC and Bernie prohibitively expensive. And rates are not rising on inflation. Gold collapsed $100 Monday. silver was dowon 7.64% for the day. Oil rallied over three bucks but that just gets it back to the $40 level.
I have enjoyed William Devane as an actor and he looks great in the leather jacket on what appears to be a battle ship, big guns in the background. But someone tell him it is time to sell not own metals.
Everything travel related rallied, airlines, hotels, casinos, cruise, and refiners. Let's see what the rest of the week holds.
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