$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
The Chemical Activity Barometer (CAB), jumped 0.7 percent in May, as measured on a three-month moving average (3MMA). Reaching an index of 99.3, last seen in November 2007, the CAB remains up 3.3 percent over a year ago, and suggests gains in business activity now will continue into 2016.
(Reuters) - Charter Communications Inc, controlled by cable industry pioneer John Malone, offered to buy Time Warner Cable Inc for $56 billion, seeking to combine the No. 3 and No. 2 U.S. cable operators to compete against market leader Comcast Corp.
For all the recent talk whether US Q1 GDP (in both 2014 and 2015) was or wasn't seasonally adjusted enough, there is a far greater and more seriously issue: one we hinted in "Global Trade Tumbles Most In 5 Years", "World's Largest Container-Shipper Warns Global Trade Is Slowing Down", and "Global Trade Dives Most since the Financial Crisis" - namely the unprecedented collapse in global trade, a hard-metric which sadly no army of economists can adjust because, well, it simply is.
This is also the issue that Deutsche Bank's head of European rate strategy, Francis Yared, shows as an example of "all not being well in the world, let alone the US."
Here is why he is cautious, and why he thinks it just may be that the lunatics have taken over the insane asylum.
"...it is imperative that the data does turnaround during 2015h2 for the recent rise in yields to be sustained. It is quite surprising to us that there is so much focus on US employment data and Fed Funds normalization to the exclusion of global trade data or US demand let alone productivity. A case perhaps of the lunatics trying to run the asylum. We suspect that while the last thing the Fed wants to do is to suggest growth isn't what it should be, for fear of making things worse, the over arching principle of not committing the cardinal sin of the Type 2 error will prevail. As long as ho ...
In How Much Battery Storage Does a Solar PV System Need? I assumed that the rooftop PV system would generate just enough power to fill annual domestic demand and that the surplus power generated in summer would be stored for re-use in the winter in Tesla batteries. The result was an across-the board generation cost of around $35/kWh. Clearly the Tesla battery storage option isn't economically viable, or at least not under the scenario I chose.
As Phil Chapman and others pointed out in comments, however, this is not the only way a domestic solar PV system can generate enough year-round power to allow a household to go off-grid. Another is to overdesign the system so that it's large enough to fill demand in winter when solar output is at a minimum and simply curtail the excess power generated in summer. How does this "no storage" option pan out?
WASHINGTON (Reuters) - A gauge of U.S. business investment spending plans increased solidly for a second straight month in April, a hopeful sign for manufacturing activity after a long spell of weakness.
PARIS (Reuters) - Patrick Drahi, the billionaire owner of deal-hungry European telecoms group Altice , will not let missing out on Time Warner Cable dissuade him from further expansion in the United States, people familiar with the situation said.
From the best market inflation-point indicator in the known newsletterverse:
Are stocks over-extended to the upside? Yes, of course. Are they over-extended in terms of earnings? Yes, of course. Are the markets in Asia, and particularly the markets in China, almost preposterously over-extended in the short term? Yes, of course. Should we then be short of stocks because of these over-extensions and over-valuation? No, we shall not be, for the trends are clear and those who've sold the markets short using very sophisticated, historically well-precedented, brilliant arguments have been wrong. Eventually they shall be right. Eventually the markets will correct and eventually those corrections will be serious affairs, but as we have always said, "Between eventually and profitability all too often are great chasms of losses." We shall do our best then to remain as we have been: pleasantly long of equities on balance. There really is no other course of actions we can take.
Long of One Unit of Ten Year Notes/short of One Unit of the Long bond future: Friday, May 22nd we wished to sell into the strength of the bond market and we did so by selling the longest end of the curve and buying that which is shorter. That is we bought September T-note futures at or near to 127 5/32nds and sold September bonds at or near to 153 1/32nd. As we write, they are trading 127 17/32nds and 154 22/32ns respectively so we are up 12/32nd on the T-Notes and we are down 43/32 on the bonds. The first loss is always the better loss and we want outâ€¦ immediately upon receipt of this commentary.
Bond yields are collapsing and US equity markets are not happy this morning. The Dow Industrials are now up only 1.2% year-to-date, and over 350 points from last week's record highs (as Trannies are down over 8% YTD).
In what is becoming an intensely contentious situation, China is ramping up its naval ambitions amid fierce criticism from Washington. As we reported on Monday, the Beijing-backed Global Times has suggested that a war with the US may be in the cards if China isn't left alone to complete its "construction work" in the contested Spratly archipelago.
What Beijing calls "construction work", Washington calls an unacceptable attempt to "redraw maritime boundaries" via the building of "sandcastles", a reference to China's land reclamation efforts atop the Fiery Cross Reef. Because Beijing claims most of the South China Sea, it says the construction of ports, cement plants, and airstrips atop the artificial islands its dredgers have built is no different in principle than the construction of roads on the mainland, a contention which the US and its regional allies view as absurd.
If there were any remaining questions about China's maritime resolve, they were answered unequivocally on Tuesday with the release of the country's 2015 defense white paper which indicates that Beijing is set to increase its "open seas protection" after countries with "ulterior motives" have busied themselves "meddling in South China Sea affairs." Beijing also indicates that its air force will shift from a purely defensive strategy to an offensive stance, a nod to what we have described as the establishment of an effective no-fly zone over the Spratlys. Finally, China accuses Japan of "dodging" post-war norms by "overhauling its military." Here's more from the report:
GENEVA (Reuters) - More Swiss banks are expected to settle with the U.S. Department of Justice "in the near future" to avoid prosecution on charges of helping U.S. account holders hide their assets from the tax authorities, a senior Swiss finance ministry official said on Tuesday.
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