• [stock-market-ticker symbols="AAPL;MSFT;GOOG;HPQ;^SPX;^DJI;LSE:BAG" stockExchange="NYSENasdaq" width"100%" palette="financial-light"]

    Market Shrugs At News And Data...What's Going On With Equities?

    September 24, 2019
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    The U.S. stock markets keep climbing the wall of worry, or should I say they are straddling the wall at all time highs, teasing us with the thought of moving higher to new records. So what's going on?

    We've written here at CD Media frequently about the risk we see in the market and how China cannot make a good trade deal in our opinion. If that is the case, then why is the equity market not selling off, pricing in a failure in the China trade talks as far as closing an agreement with the U.S. is concerned?

    There are a few possibilities. First, the market may just be wrong. Investors may just be wishing too hard for a 'grand bargain' with Beijing.

    Or perhaps we are seeing something more significant. Perhaps we are seeing the start of a new American century, a de-coupling of the United States from China. Perhaps we are seeing evidence of a Trump re-election, and the continuation of massive prosperity, similar to Reagan's second term.

    In any event, we still think there is some pain to go through before we move much higher, even though many technical analysts are calling for just that...a move higher.

    The months heading into the end of the year will be critical as we suspect indictments will start coming down from the Trump DOJ against the seditious actions of the Obama administration. Perhaps this is what the market sees, looking past all the noise from the Democrat Deep State operatives.

    The PMI came in mixed today.

    Manufacturing PMI for September came in at 51.0 vs 50.3 consensus estimate.

    Services PMI was weak, at 50.9 actual vs 51.5 consensus.



    L Todd Wood

    L Todd Wood, a graduate of the U.S. Air Force Academy, flew special operations helicopters supporting SEAL Team 6, Delta Force and others. After leaving the military, he pursued his other passion, finance, spending 18 years on Wall Street trading emerging market debt, and later, writing. The first of his many thrillers is "Currency." Todd has been a national security columnist for The Washington Times and contributed to One American News, Fox Business, Newsmax TV, Moscow Times, Novaya Vremya (Ukraine), the New York Post, National Review, the Jerusalem Post, Zero Hedge and others. He is also founder/publisher of CDM. For more information about L. Todd Wood, visit LToddWood.com.
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