Navy pilots report UFO sightings.
Mitch McConnell and Diane Feinstein are having senior moments.
Hot streak of 13 up session in the Dow ends yesterday.
Horror movies from Disney and others.
And no rubber stamp for Hunter, Judge suggests he get a job.
Barbie and Oppenheimer are big box office.
No lack of news this week, let’s take a look.
Dow Transports made their high at 18,000 November 2021. The index reversed falling to 12,000 last fall. Now the index has gone parabolic zooming to 16,588. Taking out 18,000 (all numbers rounded) and a matching high in the Industrials would be a Dow Theory buy signal. The Industrials chart has much the same look. The Industrials briefly hit 37,000 Fall 2021 and now have run back to 35,469. And Friday the Industrials have regained most of the Thursday afternoon loss.
The FED raised the overnight rate another quarter point, the market seems not to care. But the yield curve remains inverted. Translation, the two-year interest rate is still higher than the ten-year rate. Two-year rate is 4.9% while the ten-year is 100 basis points lower at 3.9%. A market axiom is that an inverted yield curve precedes a recession. Yet stores are returning to strip malls, UPS and FedEx are busy, but the cost of lunch has gone to nine bucks for a burger, drink, and fries. Casual dining prices have moved from ten dollars to about fifteen.
Our call a month back for a rally in oil prices was spot on correct. Oil prices have risen from $70 level to $80. Expectations are for higher prices as the hot weather has created more demand for energy to power air conditioners.
Disney’s Haunted Mansion seems to suffer from too much digital the last half hour. The mood seems more right for Barbie and Mission Impossible Dead Reckoning.
With senior politicians McConnell and Feinstein wilting under the lights, Elon Musk calls for a constitutional amendment. Musk did not specify what it would do but speculation would be an age limit for Congress. The constitution vision was that the citizen legislator would go home, Truman and Ike did, but since then, not so much.
