I’ll post the daily Market Report and Market Analysis after the close. Here’s some news…
ISM
The ISM Manufacturing Index increased to 59.0 in August,
up from 57.1 in July…The data have…not been either a good forecasting tool or a
good read on current conditions during this business cycle. It must be
recognized that the index is not hard data of any kind, but simply a survey
that provides broad indications of trends.” Story at...https://www.briefing.com/Investor/Calendars/Economic/Releases/napm.htm
EURO-ZONE SLOWING (Bloomberg)
“Markit Economics said its euro-area gauge fell more than initially
estimated last month, with the index for Italy unexpectedly dropping below 50,
indicating the first contraction in 14 months. ‘The economic slowdown which
began in the euro-zone core in spring is spreading,’ said Christian Schulz,
an economist at Berenberg Bank in London. ‘The latest escalation of Russia’s
aggression, and the likely stepping up of Western sanctions and Russian
countersanctions, indicate that the overall weakness could get worse.’” Story at...http://www.bloomberg.com/news/2014-09-01/u-k-factory-index-drops-to-14-month-low-on-global-risks.html
HUSSMAN THOUGHTS (Hussman Funds)
“We fully expect that the phrase “QE bubble” will soon
enough join the list of phrases like “housing bubble,” “tech bubble,” “dot-com
bubble,” “New Economy,” “go-go years,” and “roaring 20’s.” The delusions
associated with each period seem self-evident now. It is easy to forget that overvalued,
overbought, overbullish extremes are the same today as they were at those points, and investors then believed precisely the same thing: this time is different.” – John Hussman,
PhD, Letter to Shareholders at…
http://www.hussmanfunds.com/pdf/annrep14.pdf
50% CRASH? NO WAY SAYS RALPH ACAMPORA (CNBC)
“Ralph Acampora is one of Wall Street's most-respected
technicians. So what does he make of the recent cases for a mega-downturn made
by analysts such as Abigail Doolittle, who calls for a 50 to 60 percent
‘correction’ based on her technical analysis? ‘I hear that and I see what they're talking
about, but these people have been saying that for a long time," he said
Thursday on CNBC's "Futures Now."
…’I could see 5, 6, 7 percent maybe. But in the order of 20, 30 percent? No. No
way.’” Story at…
CORRECTION (CNBC)
"We've gone 35 months without a decline of 10 percent or more, and the median since World War II is 12 months," said Sam Stovall, S&P's chief equity strategist. "Everybody seems to be waiting for that all-elusive correction, when everyone will pile in. But if everybody's waiting for it, it won't happen." Part of a story about active managers underperforming the S&P 500 Index at…
http://www.cnbc.com/id/101955148
