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Senior Contributor

OptionEye - Macro Outlook - April 22nd

Good morning. 

 

All good this morning as stocks look to retreat on the opening. Earnings still coming through not so good..why is this important? Well, we have beaten down expectations so much that it should have been easy to beat the estimates. Uh oh. 

 

The S & P future is down over 4 points this morning. We get MBA Mortgage Applications this morning as well as Existing Home Sales. Maybe, just maybe, we will see some green shoots in the economy. 

 

The oil market is lower by .28 cents to $56.33 and the gold market is up marginally by .16 cents to $1202.51. Across the board very quiet.

 

The overnight ag markets see corn down 1, beans down 2 and wheat up 2. 

 

The 10 year yield is at 1.90% and really not moving. Talk has been of the German 10 year Bund threatening to go negative. Rates around the world are going lower. 

 

The dollar is a little weaker at 97.62 which is down .37. 

 

Go get 'em. 

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Honored Advisor

Re: OptionEye - Macro Outlook - April 22nd

question...

 

Why would anyone buy something in the financial instrument market that will not even return your original money? 

 

Couple that with the fact not one paper currency is holding iits value. This includes the US $

 

Kind of explains why the stock market is holding its own.

Farmland is also not in decline from its current levels as much as it should be either.

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Senior Advisor

Re: OptionEye - Macro Outlook - April 22nd

If you thought parking money with the Fed was going negative then current return would look pretty good. If we slide into deflation because of governement inaction then I'll guarantee that the dollar will be SO strong nobody will give you any for what you produce. They'll want to keep those $ for themselves. And you'll sell more for less $$$ because you'll need them badly.

 

On the other hand, banks should be making a lot of money NOT parking their money overnight with the Fed. It should be loaned out to customers to support increased economic activity, jobs and wages. What's wrong with this picture?

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