It’s a busy day so I’ll post analysis later tonight or
tomorrow. For now, here’s the news.
TRADE WAR (CNBC)
“Stocks fell to their lows of the day [this morning] on
Friday after President Donald Trump ordered in a series tweets that U.S.
companies find alternatives to their operations in China. Apple led the way
lower.” Story at…
My cmt: The President can’t “order” companies to leave China,
but tariffs are already pushing companies in that direction. Yeti and Crocs are
just two companies that have already shifted production out of China. For many
companies, it will be a longer process. Trump was responding to China’s
imposition of more tariffs announced today.
NEW HOME SALES (Reuters)
“Sales of new U.S. single-family homes sank more than
expected in July, a sign that the housing market continued in low gear despite
lower mortgage rates and a strong labor market. The Commerce Department said on
Friday new home sales dropped 12.8% to a seasonally adjusted annual rate of
635,000 units last month.” Story at…
BULLISH PUT/CALL 21-dMA RATIO (McClellan Financial
Publications)
“The stock market selloff since the last new all-time
high on July 26 has brought the bears out, and they have been trading a lot of
put options. Some trade those as an outright bearish bet, and some as a
hedge on portfolio risk. Whatever the motivation for those trades, it is
a sign of a bottoming condition for prices when we see persistently higher
trading of put options versus call options.” Commentary at…
