E Market Briefing For Tuesday, Dec. 7

Tora-tora-tora - was last week's deep-dive attack bombing the market. This time key S&P levels were defended, with squadrons of bears repelled.

Pearl Harbor, Navy, Memorial, War

Pixabay

Sorry for a World War 2 analogy, but I believe it always appropriate to honor those lost on that fateful day as the Japanese attacked Pearl Harbor. And never to forget an adequate defense is what it takes against authoritarian demagogues so that we never encounter another 'Day of Infamy' as we did on Dec. 7.

I am sickened to say on 9-11 as the World Trade Center and Pentagon were hit by Islamists (essentially funded by 'frienemy' Saudis) despite warnings out there for airline security risks (including from this writer in August that year based on an official warning seemingly ignored.. modern version of that radar operator perhaps as the FBI didn't even follow leads from its own agents as of course you know). Being personally acquainted with at least several victims of 9-11, it's a tendency to think about that every time I hear 'never again'.

Stress points in the market are reminiscent of the lone Army radar operator on a mountain near Honolulu that day, seeing a 'track' trending straight for Pearl, with 'command' assuming it must be just a flight of B-17's from the mainland. If he had been listened to it wouldn't have prevented war, but might be shorter as the Pacific Fleet and our Pacific Air Forces would have been intact. Japan would know the 'jig was up' and likely contemplated a revised military policy.

Executive summary:

  • Multiple challenges are not yet 'definitive' crises, but evolving situations, these alternating swings will occur until we evolve thru tax-selling and of course accumulation on dips, and debates about the Fed and Omicron.
  • Of these the hawkish Fed 'pivot' is perceived as most concerning for U.S. markets, while nobody believes Chairman Powell supports higher interest rates for the purpose of weakening Democrat mid-term prospects (?).
  • Spin-talk about how 'good' inflation is for people is nonsense, as it truly does put more pressure on the lower economic segments and makes it even harder to achieve or maintain middle-class U.S. living standards.
  • Of the other 'crisis', Omicron is front-and-center, as anecdotal reports of 'only' milder cases prevails, but may prove to be wishful thinking, during this New York is trying a 'business' COVID mandate, against opposition,
  • In the meantime, bio-techs struggle to achieve solutions for COVID overall, with many of the big pharma stocks evolving in stages of correction.
  • I mentioned Google (GOOGL) told workers to defer returning to offices after Jan., and that others would follow, today Ford (F) did just that (until March).
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This is an excerpt from Gene Inger's Daily Briefing, which typically includes one or two videos as well as more charts and analyses. You can subscribe for  more

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