What’s going on in the world…
Market opens in the red ahead of Fed Chair Jerome Powell’s testimony in front of the Joint Economic Committee of Congress. Just 24 hours ago, President Trump criticized the Fed yet again for not providing the proper support for the Market, namely in the form of negative interest rates. Down the hall will begin the public testimony on the impeachment inquiry. It will most likely become a made for TV event. Global markets finished lower overnight, driven by some cooling optimism on a pending trade deal and increased violence in Hong Kong. Trump reiterated that the US would substantially raise tariffs on Chinese imports if no deal is made. Trump also said the first step of a broader trade agreement is nearly completed as the press reports the tariffs are the main stumbling block in reaching a phase one trade deal. Congress is reportedly planning to extend government funding through December 20th to avert the risk of a government shutdown next week. The DOW did something yesterday it had not done since 2014. It closed exactly flat on the day. It was completely unchanged in price, with 0 gain, 0 loss and a 0% movement. This masked the significant movement beneath the surface where leadership rotation has taken place all year. Stocks are lower. Yields are lower, sending Bond prices higher. Gold is catching a bid. The Dollar is stronger. Oil is lower. The VIX popped above 13, after spending the last few sessions at that yearly low 12 level, which has long marked a Market top. Hang on tight.
Have a great morning,