Morning 11-23

Friendly for Stocks/Risk

 For the 3rd consecutive Monday positive vaccine news, this time from AstraZeneca, maybe not as hopeful as the prior two from Moderna and Pfizer, but still it prevented a majority of people from getting the disease.  BBG

U.S. government debt just experienced its best week since August, with expectations growing that the Fed may boost Treasury purchases and/or extend maturities of the securities it buys through its main QE program because of the dispute with US Treasury Secy Steven Mnuchin. Another record set last week for the Fed’s balance sheet, which has now reached $7.24 trillion -Mizuho ………..FOMC meeting 12-16

Dollar index, DXY trading below Support at roughly 10-week lows watch 91.746 2020 lows. A broader measure of the Dollar Is the Bloomberg Dollar index that is trading at 2.5-year lows


Surprisingly, Copper down on day .8%, a month’s long strike in Chile ended possibly weighing a bit on prices Silver -.9% gold -.4%. Gold trading below the 8 day, 50 d and 100 d MA less stimulus talk =lower Gold regardless of what dollar is doing Golds skew continues to trade in Favor of puts not to many bullish factors for gold. What is Bullish IS Soybeans up another 60 ticks, with today’s highs smack on $12. Bonds a bit lower besides the risk on move $197 B of paper will be sold this week, probably won’t cause too much of a fuss. Bonds -15 ticks, Bunds -18. One of the biggest moving assets today GBP

 Fridays Cattle on Feed report leans bullish For Feeder cattle, take note that prices closed lower for three consecutive days into Friday Settle. From pro Farmer “Chinese Pork imports still running well ahead of year -ago”


  • A fresh risk to be monitored – the expiration of the Fed’s 13(3) lending programs on December 31 – underscores our view that monetary and fiscal support for the economy shifts from largely proactive in 2020 to largely reactive in 2021 Morgan Stanley
  • “The American Consumer Is Flush with Cash After Paying Down Debt.” (Bloomberg).
  • Brexit: Rumors of a “temporary deal” in the works to be agreed this week
  • UK November flash services PMI 45.8 vs 42.8 expected
  • United airlines today will issue a new share offering

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