Green shoots rhetoric. What makes it interesting going into november, the financials had already been up 30 out of the march low, plus the yield curve has, in. The yield curve has come in. It is puzzling why the banks are up so much. It has to do with the narrative of the traders and investors buying cyclical stocks on the potential for strong recovery. Guy i will cheat david i will cheat. You and i talk when we are not on television. What is going on with the yen . Abigail those are some of my favorite conversations because we can move back and forth. The yen does bring attention to itself over last year. It is up about 4 . When you have stocks at alltime highs, you have bonds at record highs, although folks will say the fed the yen is a pure play haven. Over the last year, up about 4 . Some traders might like the fact that stocks are higher, but theyre probably hedging for the possibility there could be choppiness ahead. That is true for the vix. The vix is still above 20. That is in
87, the s p 500 is up 10. 5 this month the russell 2000, the biggest ever month live oly outperforma small caps that sort of sets the scene for us your note today to our producers to me says everything, bryn. You say, yeah, were overbought, the market is technically ahead of itself, 200Day Moving Average but wed be buyers anyway yeah, you summed it up perfectly. I think to give some perspective around that, when youre looking at technicians or technical calls, the 200 Day Moving Average, over 90 of stocks in the s p are over their 200 Day Moving Average when that number gets above 80 , thats typically a time to take a stand back as a trader as an investor, though, as we are, you want to take a look at that and say, hey, if we get a selloff, which im sure well get because thats just the price of admission for being an equity investor, we absolutely want to be in stocks because what are your alternatives cash or bonds . And both of those offer you no yield and so we also think that next
What can it be . Well take you inside why. Heres our main story. The enemy is within. Nancy pelosi, speaker of the house, saying democrats are threatened by a cult of chaos rising within the ranks of the gop, listen. We will probably need a supplemental for more security for members. When the enemy is within the house of representatives. It is a party at war with itself. And the leaders now seem to have no control. The proof, you have the main republican in the house, kevin mccarthy. He told his caucus to get along. The next day, upstart Congressman Matt Gates went to the home state of liz cheney, number three in the caucus, and attacked her personally. If you want to prove that you have the power, defeat liz cheney in this upcoming election, and wyoming will bring washington to its knees. Maybe we ought to fight the neocons at home so we dont have to fight them in washington, d. C. But thats the problem, isnt it . Because the neocons are at home in washington, d. C. I had a chance to
Crossed up rose in effect, that means you can jump in anytime you want. And i was appreciated. Ok, lets go to patrick 1st. Their employment in watching the potential by a cab and being presented to the public through the liberal media. We heard of phrases like they are like the avengers is like theyre super heroes or Something Like that. And then there was a talking head on p. B. S. Saying, these are intensely professional people and theyre apolitical. I mean, almost fell out of my chair. When that was said here, i look at this team and its a rogues gallery of people that want endless war promote them. Were very much involved in designing a wars that are still being fought and theyre being but when the liberal media is cheering them as if there is some kind of an enlightenment after darkness. Ok, obviously the donald trump is the darkness in their mind. But theres a lot of continuity here and i think this is whats really terrifying. And we have election cycle after election cycle where
Of optimism into the market. Thats sending a huge swath of the markets to record highs, as president elect joe biden gets clearance from the Trump Administration to begin preliminary transition protocols. Yes, it crashed through the 30,000 ceiling but can the dow close there . Heres what you need to watch in the next call it 59 minutes with me. The dow has got to be up 359 points for a brand new record. But were above 30,000 and that means we are up about 437, just 29 points above 30,000. So you get to do the math there. The s p has got to be up 49 points. We are at the moment up 55. No record for the nasdaq, but it did pop above 12,000 for the very first time and we are still there, 12,026. The russell, im not going to ignore it. I know you russell fans. These are the small and midcaps. Any gain is a record. The dow transports also about to close at new alltime highs. We are watching it all so closely. But as the markets say let the good times roll, there is a darker backdrop at this