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07Jun2017 Market Update: Wall Street Remains In A Slump While Testing A Make-shift Support, WTI Crude Falls 4 Percent, US Dollar Vacillating Broadly Remaining Volatile

Written by Gary

US markets could not keep opening gains and have been trending down since the 10 am financial reports (SPY -0.04%). WTI crude prices plunged toward $45 a barrel today as stockpiles of oil in the United States surged by 3.3 million barrels.


Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 0.05%, while the IPC is leading the S&P 500 lower. They are down 0.19% and 0.04% respectively.

Traders Corner - Health of the Market

Looking at the last three columns (below), the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.

What Is Moving the Markets

Here are the headlines moving the markets.

Wall St. pares gains as oil slips; Thursday's events eyed

(Reuters) - U.S. stocks pared early gains to trade little changed in late morning trading on Wednesday as oil prices fell, while investors remained cautious ahead of major political and economic events on Thursday.

Abu Dhabi port eases restrictions on oil tankers going to and from Qatar

SINGAPORE/DUBAI (Reuters) - Abu Dhabi port authorities have eased restrictions on oil tankers going to and from Qatar, according to industry sources and shipping circulars seen by Reuters on Wednesday.

Exclusive: Toshiba seeks chips buyer June 15, blasts bidder Western Digital

TOKYO (Reuters) - Japan's Toshiba Corp aims to name a winner for its prized semiconductor unit next week, people familiar with the matter said on Wednesday, even as the struggling conglomerate criticized the chip partner that is fighting to win the lucrative business.

Exclusive: Loophole allows Uber to avoid UK tax, undercut rivals

LONDON (Reuters) - Car service Uber is using a gap in EU and UK tax rules to avoid incurring sales tax on the booking fees it charges drivers in Britain, a practice a senior politician said was unfair to competitors and defied the intent of the law.

SEC takes more time to mull Chicago Stock Exchange's China deal

NEW YORK (Reuters) - The U.S. Securities and Exchange Commission will take up to another 60 days to decide whether to allow the sale of the Chicago Stock Exchange to a group of investors led by China-based Chongqing Casin Enterprise Group.

Mexico sugar lobby says still wants dumping probe of U.S. fructose

MEXICO CITY (Reuters) - Mexican sugar producers still want an investigation into suspected dumping in Mexico by U.S. fructose producers even after a U.S.-Mexico deal on access to the U.S. sugar market, the head of the Mexican sugar industry group said on Wednesday.

Mylan defends chairman to ISS ahead of June 22 investor vote

(Reuters) - Mylan NV defended Chairman Robert Coury's role to ISS this week as the influential proxy firm prepares to advise shareholders on how they should vote on the re-election of Coury and other directors, according to a letter the drugmaker released on Wednesday.

Facebook launches features to connect U.S. users to elected officials

WASHINGTON (Reuters) - Facebook Inc announced a set of three new features on Wednesday intended to boost civic engagement among users in the United States on its platform by connecting them more easily with their elected representatives.

Justice Dept. halts settlements funding outside groups

NEW YORK/WASHINGTON (Reuters) - The U.S. Justice Department on Wednesday said it is barring legal settlements in federal investigations that include donating funds to community organizations or other third-party groups, rather than to those directly harmed by the wrongdoing or involved in the cases.

GOLD $80 OFF LOWS MAY BE 'TIP OF ICEBERG', BUT BEWARE THE YEN

Summary
via the Soren K. Group and Marketslant



The Yen is showing signs of being too strong vs the USD and a reversal is looking likely

Gold and the Yen have a strong positive correlation to each other when itcomes to their performance vs the USD

If the Yen reverses, itwill put a damper on Gold's rally

A pullback in Gold is not unhealthy

The longer term chart still has Gold on a path to $1370 and $1550 so far.

Buying dips in Gold above $1245 and $1217 is preferred now given the previous comments

Bonus:
Given the unrest in the Middle and Far East, we also could see a
decoupling of the "what's good for the Yen is good for Gold" concept.

Make Sense?

Gold Today:

"The desire for gold is the most universal and deeply rooted commercial
instinct of the human race." So said Gerald M. Loeb, founding partner of
Wall Street brokerage E.F. Hutton & Co. and "the most quoted man on
Wall Street" according to Forbes, in his 1935 book The Battle for Investment Survival.

Latest prices HERE

And here is Grant's Interest Rate Observer on the 6 year bear breakout chart making the rounds.

Spot gold rose to its highest levels since November near $1,295 per ounce, good for a 13% gain so far in 2017.

In so doing, the yellow metal broke a technical downtrend that has been in place since its September 2011 peak of $1,900 per ounce, according to Sh ...

Facebook's Little Ethics Problem

Authored by Ruthie Blum via The Gatestone Institute,



Facebook has been aiding abusers of human-rights -- such as China, Turkey, Russia and Pakistan -- to curb the freedom of expression of their people.

"On the same day that we filed the report, the 'Stop Palestinians' page that incited against Palestinians was removed by Facebook... for 'containing credible threat of violence' which 'violated our community standards.' On the other hand, the 'Stop Israelis' page that incited against Israelis, was not removed. We received a response from Facebook stating that the page was 'not in violation of Facebook's rules.'" — Nitsana Darshan-Leitner, head of The Israel Law Center.

According to Darshan-Leitner, Facebook's insistence that it cannot control all the content on its pages is disingenuous, if not an outright lie. After all, its algorithms are perfectly accurate when it comes to detecting users' shopping habits.

There is a problem at Facebook. On May 8, the social media platform blocked and then shut down the pages of two popular moderate Muslim groups -- on the grounds that their content was "in violation of community standards" -- without explanation.

Had these pages belonged to the radicals who incite followers to violence, however, the move would have been welcome, and would have corresponded to Facebook's Online Civil Courage Initiative, founded in Berlin in January 2016, to "challeng[e] hate speech and extremism online," in the effort to prevent the use of social media as a platform for recruiting terrorists.

The pages that Facebook shut down, however -- Ex-Muslims of North America, which has 24,000 foll ...

Assad Military Alliance Threatens To Strike U.S. Forces In Syria

One day after American warplanes bombed an Iranian-backed militia that allegedly entered a supposed no-go zone near a U.S garrison in southern Syria on Tuesday - its second such strike in three weeks - a military alliance fighting in support of President Bashar al-Assad said it could hit U.S. positions in Syria, warning that its "self-restraint" over U.S. air strikes on government forces would end if Washington crossed "red lines", according to Reuters.

The statement from the pro-Assad alliance was issued in the name of the "commander of the operations room of the forces allied to Syria", and was circulated by a military news unit run by Hezbollah, one of Assad's military allies in Lebanon.

"America knows well that the blood of the sons of Syria, the Syrian Arab Army, and its allies is not cheap, and the capacity to strike their positions in Syria, and their surroundings, is available when circumstances will it," the statement said, adding that such attacks could be carried out with "different missile and military systems, in the light of the deployment of American forces in the region".

The statement also warned that the silence of "the allies of Syria" thus far was not a sign of weakness but "an exercise in self-restraint" to allow for "other solutions".

"This will not last if America goes further, and crosses the red lines," it said.

The stark warning by Syria, the first of its kind, which was struck by a volley of ballistic missiles launched by the Trump administration in early April, marks an escalation of tensions between the United States and Iran-backed forces over control of Syria's southeastern frontier with Iraq, where the United States has been training Syrian rebels at a base inside Syrian territory.

While Assad's ...

"Investors Should Be Petrified" Of The Coming Ice Age: Here Are Albert Edwards' Scariest Charts

Congratulations to Albert Edwards who this morning announced that he has once again placed first in the 2017 Extel Survey of analysts in the Global Strategy category, for the record 14th year in a row. As he adds "it is particularly gratifying that clients still seem to highly value our thoughts, especially during these cyclical intermissions in the Ice Age, when equities outperform government bonds." This year's victory appears to have been especially hard won because as he adds "you have to have a thick skin in this business, especially when our press office forwards our online press cuttings. Some of the reader abuse can get very, very personal. How do they know this stuff about me? The comments surely can't all be from my former partner!"

Of course, this being Albert, not even his record victory can brighten up the mood much, and the SocGen strategist then adds that "the current QE-inflated, cyclical equity bull market may have gone on way longer than we expected, but equities have only just managed to catch back up with global 10y+ government bonds (see chart below). The secular equity bear market will inevitably reassert itself and that performance chasm will open up again."

So, inspired by the record victory, Edwards is briefly reprising some of his favourite "Ice Age" charts, traditionally a source of rationality in an otherwise insane market, and lately, world.

* * *

The macro underpinning for our Ice Age thesis is the West's slow replication of Japan's 1990s descent into outright deflation. Each cyclical recovery sees lower highs in both inflation and nominal GDP growth rates and the inevitable recession, when it comes, wreaks increasing levels of havoc in financial markets.

But w ...

Elon Musk: The Man, the Myth, the Risk

Tesla is one of the hottest stocks on the planet, thanks to investor belief in Elon Musk. Paradoxically, that might be the biggest risk investors face.

Some Inconvenient Facts for the Fed

The Federal Reserve is primed to raise rates next week despite a slow-growth economy showing weak wage gains for workers, cooling inflation and dimming prospects for near-term fiscal stimulus.

In Biotech, No News Is Bad News

Biotech stocks have a special need for catalysts. The relative absence of them of late should concern investors.

Metals Stocks: Gold threatens to end 3-day streak of gains as dollar strengthens

Gold prices on Wednesday are on track to end a string of advances as the dollar gains some ground.

Apple ad-blocking could help Facebook and Google despite slowing online ad growth

Apple Inc.'s plan to block the ability to track users navigating the internet through its Safari browser could slow down the growth of online advertising but still benefit some of the largest web companies that rely on ad revenue, Morgan Stanley analysts said Wednesday.

Coats, McCabe decline to answer whether Trump has intervened in FBI's Russia probe

Grilled by senators, intelligence officials including Director of National Intelligence Daniel Coats and Acting FBI Director Andrew McCabe on Wednesday refused to answer whether President Donald Trump asked them to intervene into a probe into alleged Russian interference in the election.

Earnings Summary for Today

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To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

gary@econintersect.com

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