Stocks gapped higher yesterday on the announcement there is a possible deal (that still must be voted on). Sorry, but this deal is far worse than no deal, it means that we continue to make the impossible math worse. The dollar is lower, bonds are flat, oil is higher, gold and silver are down slightly, and food commodities are higher.
The Manufacturing ISM and Construction Spending are released at 10 Eastern this morning and will be reported inside of today’s daily thread. The economic calendar is fairly busy this week, culminating in the July Employment Report this Friday. Expectations are for +75,000 Nonfarm jobs.
The VIX closed on Friday well above the upper Bollinger, as long as the deal is consummated it is likely to return inside the normal range, and that would trigger a short term market buy signal:
Pimco’s Bill Gross says he sees “Debt Men Walking…” No kidding, Bill. And just who exactly is one of the world’s largest purveyors of debt? Who is it exactly who makes their living profiting from debt, who worked tirelessly to push their exposure onto the American people? This guy makes me sick as all the irresponsible debt merchants do.