This indicator says the ‘billionaire bears’ are wrong
Wednesday, Aug 23, 2017 05:22 by InvestingPie

Both sides are digging in this morning, after yesterday’s drama handed more ammo to old adversaries.

That’s the bulls and bears debating the Dow’s 200-point pop higher, not the partisan reactions to the president’s campaign-style rally in Phoenix that ended in tear gas.

A correction for stocks is still under way, say bears here and there. But CrackedMarket’s Jani Ziedins writes that “it appears like the path of least resistance remains higher.”

Another who thinks stocks will find it easier to move up than down is Kevin Muir, who serves up our call of the day.

The MacroTourist blogger has mulled over the bearish growls coming from Ray Dalio and other billionaire investors, and he’s not that impressed. Instead, he is dazzled by an indicator that “magically continues to work.”

“Although I am sympathetic to Ray’s view that the dysfunction in Washington will cause American financial assets to underperform in the coming quarters, I wonder if we aren’t maybe overthinking the whole situation,” the former RBC derivatives trader says in a blog post.

Keep it simple, and watch strategist Ed Yardeni’s fundamental indicator for stocks, as it basically says “no weakness here,” Muir writes.

He offers the chart below, saying it shows how Yardeni’s gauge (which combines consumer confidence, jobless claims and a commodity index) has matched the stock market’s big moves remarkably well.

The economy

PMIs for services and manufacturing are due shortly after the opening bell, followed by figures for new home sales.

The Dallas Fed’s Robert Kaplan is due to speak in the afternoon, as traders continue to wonder what this week’s Jackson Hole conference will deliver.

Check out: MarketWatch’s Economic Calendar

The quote

“We collectively made the decision with Robert to switch games as the tragic events in Charlottesville were unfolding, simply because of the coincidence of his name. In that moment it felt right to all parties. It’s a shame that this is even a topic of conversation, and we regret that who calls play-by-play for a football game has become an issue.” — ESPN explains why announcer Robert Lee will no longer take part in the broadcast of the University of Virginia’s Sept. 2 football game.

The Disney DIS, +1.58%  unit is under fire for the decision.

Random reads

The price difference between new and used cars is near record highs.

Granite Staters are worried about hedge fund manager Och-Ziff owning ski areas.

Starbucks SBUX, +2.45% has hopped on the sushi burrito bandwagon.

The Navy is removing the commander of the fleet that suffered four recent collisions.

Bitcoin BTCUSD, +3.51% has been recovering after a drop that got folks talking:

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Very informative
05-03 04:23 by Liam
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