- Moving the markets
For most of the session, the markets engaged in directionless wandering but, as we’ve seen many times in the past, an afternoon ramp pushed the 3 major indexes solidly in the green, while pulling the lagging Nasdaq along for the ride.
Two concerns kept the indexes stuck in a range, namely fears that the pandemic is worsening and the rapidly deteriorating US/China relations. Regarding the latter, the US instructed China to close its consulate in Houston provoking consequences that are unknown at this point.
In the end, equities shook off all concerns, and we rallied into the close leaving all issues in the rear-view mirror—for the time being.
In terms of earnings, MarketWatch added:
Thus far, quarterly results have been better than feared. Of the 58 companies that have reported results thus far, 77.6% have reported above analyst expectations, compared with the average of 65% who reported above consensus estimates in prior quarters, according to data from Refinitiv, based on data going back to 1994. A little over 22% have reported results that fall below expectations, versus an average of 21% missing, the data show.
As announced yesterday, both of our Trend Tracking Indexes (TTIs) signaled a new “Buy.” We received confirmation this morning when the markets held steady and did not sell off. Our Domestic TTI took another jump today validating the current bullish theme. See section 3 for more details.
Also, GLD, which we hold, turned out to be the winner of the day again with another solid showing of +1.52%. Thanks to the Fed, and its reckless money printing efforts, the precious metal has far more upside potential than what we have seen to this point.Read More