E Market Briefing For Monday, May 3

Last night I took time to listen to the Apple & Google compliance guys being grilled by Senators. The primary topic was failure to 'really' apply excess gains in revenue from 'App' stores to reinforcing security and stopping scams. They (the Senators) did not get clear answers; and the questions (for once) actually reflected knowledge of the structure of fees; the inability to control secondary products being sold within downloaded apps; and so on. Where this goes is a potentially interesting trend of containing the emphasis on profits, not service, in a true 'pro-consumer' fashion; and I think the data-collection issue aims far more at Google than Apple; though they weren't singled-out. Antitrust efforts?

In sum: there are pockets of the market that are working and will work. What the market is saying about 'full valuation' or not; is sort of 'sell the news' style reactions, but not across-the-board. A bit of blow-off top was more Nasdaq than S&P, and certainly not in the DJIA.

So there is restraint; but it's not focused on fears of Fed tapering so much as I think it's the expected exhaustion in late April and as we go into early May. Of course we allowed that Amazon's showing might have led stocks higher; but it did not. Our overall view was get through this past week's Fed Meeting; and a slew of major earnings reports, and implement some sort of shakeout.

The market can meander in a relatively narrow range for awhile; and given so extended an S&P,  percentages really are fairly narrow, considering.

Missed by lots of investors are some of the past and potential banking issues; which losses a handful of players recently suffered remind us of. Goldman Sachs as well as JP Morgan made more mistakes than they generally wish to talk about; while fortunately at the same time as they sidestepped the huge Archegos 'family fund' collapse, that cost several billions (Nomura and Credit Suisse, which just had management shifts, and a lesser degree others, were hurt by that).

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William K. 1 month ago Member's comment

Perhaps it has reached a time to start closing some borders in order to stop the spread of this plague! Perhaps preventing the massive waves of death may be a bit more important than assuring the maximum profit for a crowd of multi-millionaires. Perhaps it is time to put the brakes on and stop greed and stupidity from wiping out huge amounts of the population.

OR, perhaps this is the run-up to that Judgement Day announced so long ago???