Market Wrap Tuesday

Good Evening,
                        The markets, at first glance closed up small. Taking a look under the hood though reveals some interesting developments. so, let’s take that look…
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The Macro !!
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                        The macro was not just okay. The macro is starting to reveal an economy that might just be hitting that elusive “breakaway speed” that the increasingly less important crowd at the FOMC was so worried about a few years ago.
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GDP ?? Bang !!  Personal Consumption Expenditures revised considerably higher. Final Sales to Domestic Purchasers (more important than you think) inched higher. Durable Goods revised even higher, and wait for it…. wait for it….  Gross Domestic Income prints at it’s best level since Q2 2014.
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Get some.
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Want more ??  Get in line.
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Redbook ?? Bang !!
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Consumer Confidence ?? Bang !!
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Fed Speakers ?? Ignored. Win, win, win.
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         The S&P 500 has largely gone sideways now for three sessions, which seems a bit like digestion to me. Corporate earnings are improved. Growth is starting to click as we go into an era that could realistically involve lower taxes all around, repatriated funds, and more spending on infrastructure (fiscal) & development (corporate). I’m not telling you this all ends well. How the heck do I know? I am telling you that I think this is a good spot to be in for right now.  BTW, if you’re in the retail trade since earnings based on historical norms, you’re also thinking of getting flat this week. I’m two thirds of the way out myself.
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Winners.
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          Italian equity, and sovereign debt. Somebody, somewhere thinks that they’re out of the woods on this one. Domestically, Health Care led the way, supported by the Providers and Biotech. The Utilities also turned green as Treasury yields fell.
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Losers.
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           Crude took an all morning beat down before stabilizing thanks to an OPEC fumble at the five yard-line.  OPEC does have time for one more possession, but a field goal is not going to cut it.  The Energy sector obviously took a second consecutive kidney punch.  Gold rallied late to close down small, as the US Dollar spent the day rolling down a hill.
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Okay gang, have a great night, and stay motivated.