The first of today’s two events is behind us now, with retail coming in weaker than expected. After the big jump in June (up 12.1%) retail growth has become weaker (up 8.3%) and weaker (up 1.3%) and weaker (up 0.7%, the most recent report). So clearly the explosive bounce after the shutdown is dead.
In spite of this, stocks keep stomping higher, blind to any economic prudence. Here we see the /RTY – – the small cap futures – – banging out a steady series of higher lows.
Mercifully, the line in the sand has continued to hold (for now, at least, as the all-important Powell non-event will be taking place later today).
I would also suggest keeping a close eye on bonds, which may be shaping up for a breakout. Given the profoundly feeble nature of the worldwide economy, I find it impossible to believe that higher interest rates can even see the light of day, and a strong bond market would be, for me, just what the doctor ordered. We’ve got a right triangle pattern forming, although it isn’t done quite yet on the /ZB
I suspect you heard that Facebook got hit with surprising news that the inexplicably popular Kim Kardashian (shown here sans makeup, so you can try to divine just what the fuss is all about) is “freezing” her account there. Remarkable what power a single social media celebrity has, isn’t it?
Speaking of which, middle-aged fuddy-duddy that I am, I asked my kids to explain TikTok to me, since evidently the world’s entire existence hinges on the fate of this app. Well, this .gif illustrates TikTok in a nutshell, by way of one of their most popular users. Here we see a lovely young woman making a video of herself, looking at herself, so that other less-lovely young women can look at her looking at herself and wish they looked like her.
Pathetic, isn’t it? Just pathetic.
Allow me to introduce the Slope antidote: a statue entitled Slayer of Vanity.
