Today is 109 market days from the 3/23 low. 
Check for consistent ranking within the past 21 days for new commitments OR Jack’s 5-10 day rule as he explained in the session on 8-25.

Bonds & US$ drop with the new stock highs.

Futures somewhat undecided.

My momentum scans were below average without any particular bias. Without the promise of new stimulus, speculation has been diminishing.

TSLA & AAPL still attracting investors. Apparently, the DJI is being forced to adjust three components due to the AAPL split. A three component adjustment is rare.

RSI suggests the S&P is becoming increasingly overbought.  Major moving averages remain supportive at 20, 50 & 200-SMAs. Weekly chart reveals declining volume which is reason for caution. As I wrote on Monday, bears are harder to find. The put/call ratio yesterday was a bullish 0.62 indicating complacency. Another reason for caution.

Value is, as beauty, found in the eye of the beholder.  “It is easy to tell which of the following is more important in measuring the value of Amazon: warehouses (tangibles) or automated logistics systems (intangibles).” An AI driven value oriented ETF filed Friday (NVQ) changes the traditional value approach returning 13% YTD.

Substantial on-line presence has given major firms profits during the shut-down leaving small businesses without a developed web based sales platform even weaker. “Walmart, Amazon, Target, Home Depot, Lowe’s, and Costco accounted for 29.1% of all U.S. retail sales in the second quarter.

Inflation fears have driven the 30-Year T to 1.42% with the Fed expected to ignore inflation above target for a while to compensate for the decade of low inflation.

Maybe AAL doesn’t have enough frequent flyer miles to hock for another loan. It will furlough another 19,000 when payroll support ends leaving a total staff reduction of 40,000.

Progress on the U.S.-China trade agreement passing the critical 6-month review eased market tensions. China will buy US made semi chips along with 40M tons of soybeans.


Don Creech
2323 Alaska Ave. E.
Port Orchard, WA 98366