Courtesy of John Nyaradi
Market Summary: Global markets headed yet closer to the cliff today as the deficit battle raged on.
At Wall Street Sector Selector, we had a nice day as our inverse ETF, put option and cash positions served us well for another day.
This is really getting scary now as tomorrow is Friday. That means that we’re heading into what could be a troubling weekend and then on to Monday with “D-Day” lurking just ahead on August 2nd.
Treasuries (IEF) and the Dollar (UUP) gained as investors can’t figure out where to hide, or if there is anywhere to hide. Markets still believe that Congress will get this done, but how long that belief, or suspension of disbelief goes on, is anybody’s guess.
However, ETFs still offer reasonable places to hide should the worst occur. Use ETFs to Curb Against Default Risk
The “Boehner Bill” was due to be voted on today but was delayed as apparently the Speaker can’t ensure its passage, which is truly incredible since he has a majority in the House, while the Senate says its an exercise in futility as they won’t pass it anyway.
One can only wonder what these people are thinking and if they realize what kind of fire they’re playing with.
In case they’re wondering, a glance at today’s late sell off should give them a clue, along with this being the 4th down day in a row for U.S. indexes.
Another clue could be ratings agency S&P saying that $4 Trillion in cuts would be a good “down payment” which is truly scary since our political leaders can’t seem to get anywhere close to that number.
I don’t place blame, but Robert Reich, former Secretary of Labor under President Clinton makes some interesting remarks in The Empty Bully Pulpit.
Tomorrow is Friday…..
Stock Market Summary:
Dow Jones Industrials (DIA): -62; -0.2%
S&P 500 (SPY): -4.0; -0.3%
NASDAQ (QQQ) +1.5 +0.05%
Russell 2000 (IWM): -1.2; -0.2%
Tomorrow’s Action:
Economic Reports:
Tomorrow brings three key economic reports, 2nd Quarter GDP, July Chicago PMI, and July Consumer Sentiment.
It just doesn’t get more exciting than this.
Have a great evening,
John
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