- The pressure is on – Congress has to a certain extent snookered President Trump insofar as he can hardly veto a bill on HongKong with this much support on both sides of the aisle. And that is happening as the two sides argue over the specifics of the Phase1 trade deal which is increasingly starting to look like another backslide into higher tariffs – just like the collapse of talks in May.
- Stocks again came back from the brink with a bounce from just in front of the 15 day ema before the S&P 500 closed down just 12 points or 0.4% at 3108.5 -17 points off the low of the day. That’s one heck of a recovery. But it looks like day trading rather than anything concrete because US 10’s and other rates are lower.
- The 10’s are 1.745% back below the old trendline and looking biased lower yet. The Aussie dollar just under 68 cents again and gold just below a break back into the old range as it sits at $1473 this morning tends to support bond, not stock, traders. So we’ll see how things go, but I am comfortable with my decision yesterday to lift my hedges.
Now, let’s dive into this morning’s newsletter.
And for non-subscribers, If you want to have a trial of the daily subscriber service to get this and the 3000 odd words I write – and lots and lots of chart – on markets each day you can sign up here for a trial.