We are not on the distro list, but we need to ask: is it reasonable that the futures market would only be down 56 points on the Dow after a weekend like this one?
I mean think about it:
Japan was down more than 3-1/2 percent overnight.
Hong Kong was down 2-1/2 percent.
Europe is bleeding red all over the place so far with Germany and France down 1-1/4th’s percent. The UK, which may have enough sense to exit the clutches of the EU this morning, was down ¾% of one percent.
Yet percentage-wise, the US market was down what? One-third of one percent?
Uh…yeah, sure, you bet-cha.
While we will be comfortably in the money on our short position anyway, the real question (above both of our pay grades) is how much money from the exchange stabilization fund (ESF) did this morning cost us? I mean, if anything, of course.
It is an intriguing question following the disastrous and world-changing events in Orlando early Sunday morning. New York Times coverage is over here.
But more important is what we are learning about the shooter – beyond the pledging allegiance to ISIS. Turns out that in addition to being described by a co-worker as homophobic and unhinged, Omar Mateen apparently worked for a major Department of Homeland Security contractor.
As you would expect, this has instantly spilled over into the hotly contested US presidential contest. And, perhaps morer significantly, it underscores how the press is sharpening its axe as extensions of the Dump Trump movement.
Politico, for example, decries “Trump’s Tragic Victory Lap.” Painting Trump’s response as “reality-show small” we didn’t have too much trouble figuring out the reporting sentiments.
A bit more evenly Slate headlined “In Statement on Orlando Shooting, Trump Says “We Can’t Afford to Be Politically Correct Anymore.”
Former UN ambassador John Bolton made a couple of key points to Fox News: One is that terror is still growing and two we need to understand that there is a price for failing to aggressively seek it out.
There is also an open question about whether the arrest of John Wesley Howell by California authorities, on his way to an LA Gay Pride event where he intended harm according to police, was strangely “coincidental” – at least so far.
So as the daylight comes up over the coffee cup, we have many possibilities to consider:
1. We wonder if the Fed/Treasury went out and bought a ton of futures?
2. What will Donald Trump say in Vermont, and Hillary Clinton is Ohio, to promote their presidential aspirations?
While there are some accounts that attempt to apologize the president for his lack of clear-speaking, it will be instructive today in her Ohio speech, whether Hillary Clinton can name fundamentalist Islamic terror directly, or whether she will continue the mumble-speak and continuing lack of mental acuity that has allowed the problem to fester for so long, all the while continuing to bring in planeloads of un-vetted Middle East refugees. A direct result of the misguided Nasty Nest of Neocons who even now persists with regime change plans – all of which have blown up in our faces.
My expectation is that the Left will use the event as yet-another pretext to abridge the Constitution via gun control which, as I see it, is exactly back-asswards of the direction we should be taking. It is a “Shameless Pivot.”
But you really ought to be used to that kind of thing by now.
So we return to our original question:
“How much is the futures being down 64 points gonna cost us?”
My guess the market will slide more than a hundred, and possibly twice that ahead of the Fed this week.
Even if the market falls today, the Fed is ahead of the problem with their latest 3-month H.6 Money Stocks report showing the M1 money supply screaming ahead at more than 11% per year. (M1 is up more than 14% in the past two years, too. And the previous 13 weeks prior to May 30 is up 12.1% seasonally adjusted an annualized. But hey, don’t let me kill the illusion of economic growth for you. But it WILL POWER METALS UP.)
Eventually, that full-tilt boogy at the presses will flood back into the market, stocks will soar, and the myth of a healthy American economy will persist until the grim reaping to come in 2018. That’s about when you’ve be swimming in ducats that won’t buy anything. Which is why you need to pay off debts while you can….
“Never Stops Selling”
Remember those Yellow Pages ads from back in the day: “Never stops selling” was the tagline/positioning statement.
At last, however, something other than the usual anti-BREXIT pap out of the UK as Boris Johnson says Brexit would bring Australia and the UK closer together.
I will have to defer to our ex-NYC marketing maven in Ecuador for an analysis of who’s getting more useless press: The Kardashians or anti-BREITeers.
3-1/2 Inches of Rain
That was how much was in the gauge here at the official UrbanSurvivial East Texas Outback Weather Station. (Which doesn’t seem to be referenced anywhere else….hmmm….)
On the other hand, the fact that we were up half the night with thunderstorms moving through the area means this could be a terrible week for severe weather, so you want to check your family for storm preps before heading out.
Useless Story of the Day
More Useful: Quora Monday
Best country to travel on a budget? Vietnam…explained over here.
Ah, a hot, steamy humid morning…just the kind of day that screams “Pizza for breakfast!” don’t you think?