A Few Things…

One of my go to Sites,the Market ear, brought this fund /ETF to my attention,FDN, the First trust Dow Jones Internet index fund which holds companies that generate at least 50% of its annual sales/revenues from the internet.Companies that make up the Fund AMZN,FB,pay pal,Ebay just to name a few so you know where I’m going with this,an ETF made up of the Market leaders.It touched a 52 week high today,as this goes so does the broader market over last 40 days 88% Correlation SPX and 95% Correlation NDX 78% correlation RTY,the Correlation numbers are much higher if you extended look back period to 120 days.

Why Stocks higher today is frequent questions being asked today,Weekend riots, looting bad but hopefully don’t last much longer then a day or two thus impact on Economy is minor.Also Hope that reopening plans for cities impacted wont be delayed too much this is evident by Hotels Index +5.5%,Airlines +4% and Casino and gaming +2.8%.Recall Vegas reopening this week.Tomorrows Monthly Auto number are expected to show a hefty increase in demand,From Pantheon Economic average Age of person buying A new car is low 50s average age of hospitality leisure worker is mid 30s,the latter the hardest hit category by Recession, so auto demand expected to be back….PMI data today was good vs expectations, the headline and sub components were higher then last month,the goofy Supplier delivery component showed less of a Logistical nightmare for deliveries so a positive there as well.

Yield curve continues to steepen with the 5s-30s approaching levels not seen since 2017 ,5 year yields little changed today with 30s higher by 5 bps or so.Long end supply one of the main factors for steepening as is talk of Yield curve control.

One last point not impacting market is that according to predictit Biden is slightly ahead of trump to win Presidency for first time since late March.

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