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Market Update Monday 07/06/20

It was pretty much another “Up, Up and Away” day on Wall Street, as the SkyNet BuyBots took control in the overnight futures leading to a sharply higher open of trading on Wall Street. From there, stocks went a net nowhere as they zigged and zagged into the close. The DJIA jumped 459 points (1.8%) and the NASDAQ zoomed higher by 226 points (2.2%).

Stay tuned as the battle 0of the SkyNet StockBots continues.

07/11/20 – Shawn Langlois: The stock market is poised for a 40% drop, warns economist who says the current climate feels a lot like 1929

‘I think we’ve got a second leg down and that’s very much reminiscent of what happened in the 1930s where people appreciate the depth of this recession and the disruption and how long it’s going to take to recover.’ That’s A. Gary Shilling, longtime economist and president of A. Gary Shilling & Co., again delivering a gloomy take on what’s next in a recent CNBC interview. Read More.

07/10/20 – MN Gordon: Game Over Spending

Second quarter 2020 came and went like a California wildfire. The economic devastation caused by the government lockdowns was swift, the destruction immense, and the damage lasting. But, nonetheless, in Q2, the major U.S. stock market indices rallied at a record pace. Read More.

Market Update Thursday 07/02/20

The SkyNet BuyBots took control shortly before trading on Wall Street opened, as a  strong employment report. From there, stocks zigged and zagged their way into the close, holding onto most of the early gains. The DJIA advanced 92 points (0.3%) and the NASDAQ tacked on another 53 points (0.5%).

Stay tuned as the battle 0of the SkyNet StockBots continues.

07/09/20 – Charles hugh SMith: You Are Now Leaving FantasyLand: The Losses Will Be Taken By Somebody

Round about late March, we entered a Financial FantasyLand in which all the sins and excesses of rampant financialization were going to be painlessly washed away. Mever mind the entire U.S. economy is an inverted pyramid of balance-sheet “value” and debt resting on a shrinking foundation of collateral; everyone would be made whole in the Federal Reserve’s Financial FantasyLand. Read More.

Market Update Wednesday 07/01/20

The SkyNet StockBots seem to have headed for the (mostly closed) beaches ahead of Independence Day holiday, as US stocks delivered a split decision in quiet trading. The DJIA dropped 78 points (0.3%) and the NASDAQ gained another 96 points (0.9%).

Stay tuned as the battle 0of the SkyNet StockBots continues.

Market Update Tuesday 06/30/20

It was pretty much another “Up, Up and Away” day on Wall Street, as the SkyNet BuyBots made sure US stocks closed solidly in the green on the last tasding day of the month and the quarter. The DJIA gained 217 points (0.8%) and the NASDAQ jumped 184 points (1.8%).

Stay tuned as the battle 0of the SkyNet StockBots continues.

07/07/20 – James Rickards: Depression and the Great American Exodus

Is the worst of the economic collapse over? Not really. The economy is off the bottom, but that’s only to be expected after the historic collapse of March–May and the stock market crash in March and April. The question now is not whether we’re growing again. We are. The questions are how fast is that growth, and how long will it be before we return to 2019 levels of output? Read More.

Market Update Monday 06/29/20

As with last Monday, it was pretty much an “Up, Up and Away” day on Wall Street, as the SkyNet BuyBots applied steady pressure from open the close. The DJIA jumped 580 points (2.3%) and the NASDAQ surged 117 points (1.2%).

Stay tuned as the battle 0of the SkyNet StockBots continues.

07/06/20 – Gary Shilling Sees 1930s-Style Decline In Stock Market

“I think we’ve got a second leg down and that’s very much reminiscent of what happened in the 1930s where people appreciate the depth of this recession and the disruption and how long it’s going to take to recover,” Gary Shilling, the president of A. Gary Shilling & Co., told CNBC’s Elizabeth Schulze in an interview on Monday, referring to the possibility the stock market will tumble once investors realize the shape of the recovery is an “L” rather than the overhyped “V.” Read More.

07/05/20 – Bruce WIlds: Wall Street Soars While The Real Economy Slowly Dies

Main Street is the real economy that exists far from Wall Street. It can be seen in the large areas of America where most of us live. After twelve long years of near or zero interest rates, massive government deficits, and watching tons of money and stimulus being poured into the economy we remain mired in slow growth. On top of this, we now are seeing covid-19 monkey hammering many sectors of the economy into submission. Read More:

07/06/20 – Tyler Durden: JPMorgan Turns Bearish, Sees “Unattractive Risk-Reward” For Stocks In H

It may come as a surprise to some, but just two weeks after JPMorgan said it was turning bullish on the US, officially upgrading US equities to Overweight after holding a missing the biggest equity rally in decades with a Neutral rating on US stocks, the bank appears to have had a change in heart, and overnight the bank’s chief equity strategist Mislav Matejka writes that looking ahead, much of his newly found optimism has vaporized and as a result, “risk-reward is unattractive for equities in 2H of 2020” and stocks are likely to lag bonds and cash again, as they did in 1H ‘20. Read More.

07/06/20 – Daniel Lacalle: Europe’s Bailouts Risk a Full-Blown Financial Crisis

The measures implemented by governments in the eurozone have one common denominator: a massive increase in debt from governments and the private sector. Loans lead the stimulus packages from Germany to Spain. The objective is to give firms and families some leverage to pass the bad months of COVID lockdowns and allow the economy to recover strongly in the third and fourth quarters. This bet on a speedy recovery may put the troubled European banking sector in a difficult situation. Read More.

07/06/20 – Yazid Suleiman: The Market Economy Has Been Replaced by a “Fiat Economy”

The COVID-19 pandemic has torn the veil off what we can now can call a “fiat market. It has stripped away all pretense of a true market. Governments and central banks now create both supply and demand. Bailouts and subsidies are handed down so that zombie corporations can produce on the one hand, while welfare, universal basic income, and other handouts are distributed so that citizens can buy the products. Strictly speaking, this is a type of socialism. Read More.

07/05/20 – Tyler Durden: Top Economist Warns No Recovery Until 2022, Stock Market Correction Ahead

It remains to be seen if the US economy even began anything that could realistically be called a “recovery” in June. After all, virus cases are surging, states are pausing or reversing reopening plans, and retail foot traffic has stalled. The “V-shaped recovery” hype in which jobs and economic growth will surge to 2019 levels ahead of the election is nothing more than propaganda hogwash from the Trump administration. Read More.