Market Briefing For Tuesday, June 23

A sort of 'passive progression' - seems to have evolved, whether related to a stock market that hovers (as expected to continue, for the moment this week) at a relatively high (but not overbought because it's corrected internally for weeks) level, a political environment which has tolerated or sustained civil disobedience by passively watching what's going-on in a little area of Seattle (but which tends to inspire others to replicate that chaos where extremists think they can prevail), or even with regard to how many (in true American assertions of independence) defy or are even offended, by the mandated wearing of face-masks in may 'hot spot' cities of our Nation. Is everyone getting used to a new complacency?

Executive Summary:

  • Peter Navarro creates evening plunge and reversal, based on China Deal being 'dead', while probably is really saying it has been since January.
  • The S&P had a dramatic 60 handle move tonight, and actually is up slightly at press-time.
  • WHO is warning of an accelerating pandemic, as I think we knew thanks.
  • Demonstrators are out-of-hand at the White House tonight, a factor as well.
  • Market high-level trading range actually persists, while a majority of small and mid-cap stocks have been correcting internally during most of June.
  • And Apple (AAPL) introduced nifty software enhancements (some like Apple TV's picture-in-picture are obviously going to be utilized), and improved mail as well as messaging capabilities in IOS 14 and the new MAC OS which they will call 'Big Sur' (I'd have preferred Monterey or Carmel, but that will do).
  • Finally, and after all is written and recorded, at 11 pm Peter Navarro tells a reporter.. um.. I didn't mean that... all is fine with Trade Deal Phase 1.
  • Navarro says his comments were taken 'wildly out of context'. 

It's actually not that simple, nor is it difficult to comprehend. And it's a price that a sort of acquiescence to a 'bridge too far' being taken (or given) as reasonable demands for reform or better policing, deteriorates into contained chaos, but at the risk of doing more than providing a 'civics lesson' about Constitutional law to the generally unwashed in society (and that can include some politicians). Sure, there are reasonable and educated protestors, but increasingly reform efforts by them are sidelined by chaos trying to undermine our heritage basically (gone so far that any reasonable politician of either party knows that to be the case.. and a few that bowed down or donated funds 'as if' to a good cause might have 2nd thoughts, depending on where those accolades or funds were directed). 

The lawlessness gripping some cities hasn't eased, tonight I'm watching as they try to create another so-called 'autonomous zone' (not gonna happen) in DC, at the park across from the White House, which might not happen if Seattle Police had been authorized by their Mayor to defund (pun intended) the occupiers and arrest the perpetrators, but no, instead contributed a concrete barrier allowing it seems, the occupiers who started peacefully and then deteriorated into chaos, a better choke-point to control entry and egress. Unacceptable and at some point if this continues you start to reach a couple conclusions, one of which is bullish from the stock market's standpoint. Tomorrow Seattle should redeem itself.

How so? Well it shows some, certainly not all, of the varied protestors to have an agenda which wants this to be an inflection point not for law & order, but to deny a true unity and backdrop of equal rights, which is not the same as equal success in life, just an opportunity to strive for it. Simply put, it's no longer just a contrast between protestors and thugs and looters, but recognizing some group organization is going on, or while BLM might seem logical and innocent enough on the surface, many supporting it are probably naive about Marxist roots. We'd not suggest any lives don't matter, we would infer people shouldn't contemplate donations or support of a faction (even within a group) that intends agitation and actually uses protest or damage, because that's their goal, not harmony. In that sense, there's a degree of 'victim mentality' overreach taking place, I gather. 

In-sum: between the virus and the DC events tonight, let me be brief this time: there is no change in the market, there is a deterioration in social order, there is an expansion of COVID-19 cases in the areas you all know about, one of which is my home state of Florida, and there is tension on the Indian-Chinese (and there will be no movement to tear down Gandhi statues in Mumbai because India has Hindus and Muslims, but no Cherokees or Apaches that we're aware of) border, which has global overtones should push-come-to shove. (The irony is that yes, in the U.K., there was an effort to deface a Gandhi statue.) 

The market may break in the morning, briefly, perhaps for a couple of reasons: One; the tension in Washington which might be resolved before morning. Two, Seattle is, per that same Mayor, going to 'retake' that zone that shouldn't have existed, but is a lesson not just in giving-over to a mob, but what it takes when a city stops providing fundamental property, medical services, or other services. So now number three, Peter Navarro made a comment this evening that the China Trade Deal is 'dead'. Is that accurate? Probably just a summary remark.

I don't know for sure yet, lately we've seen lots of comments and contradictions, and it's hard to sort everything out. However, China's buying of more soybeans (etc.) from Brazil and Argentina (we showed a may of 'cargo ships' departures from South America to below Africa on the way to China just a couple weeks ago) did suggest they were diverting purchases to South America not the USA.  

P.S. the market tanked and reversed during my recording the Final, perhaps it's affirming my suspicion that Navarro's remarks capsulized rather than presented anything new, about the Trade Deal with China. And 'if' Navarro (and I believe it given his January warning to the President) knew as soon as China's officials departed that the 'unknown' virus was spreading, then his comment tonight just reveals what we all knew from putting together the dots back then. It however of course leaves-open the question of how that contradicts what the President has repeatedly said, but we'll leave that for Mr. Navarro to reconcile with POTUS.  

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