General Market Commentary – Fri 6 Jan, 2017

Financials have been driving the markets

There have been a number of comments recently about how well financial stocks have been performing during this post-election market rally. Now a chart (below) shows just how big of a roll they played… Also 50% of the rally to new highs in the S&P was thanks to financials!

With all of Trump’s talk about deregulating added to interest rates slowly climbing it is the perfect storm for financial stocks to move higher. We even had Rick Rule on the show last weekend (click here to listen to what rick had to say in segment 2) stating he was looking at community banks. Sometimes it is worthwhile to follow where the money is going but we also need to be aware of the risks.

The largest risk on my mind currently is the huge borrowing that occurred at ultra low rates. When these rates start to rise more and more borrowers will be caught offside. Now this couple possibly be papered over but shocks will be felt in markets and at the political level.

I more or less just wanted to point out that this market rally is not occurring on a broad sense. When we see one sector leading the charge it worries me that a correction is coming – much like at the beginning of 2016 when the FANG stocks drove markets higher.


Featuring:
Cory Fleck
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Comments:
  1. On January 6, 2017 at 9:47 am,
    CFS says:
  2. On January 6, 2017 at 9:55 am,
    CFS says:

    The Latest At CES (Consumer ElectroonicsShoew

    Consumer Electronics Show:
    Associated Press – 11 minutes ago

    LAS VEGAS (AP) β€” The Latest at CES gadget show in Las Vegas (all times local):

    Smart devices are everywhere in your home

    Samsung is releasing two mid-range devices as it returns to smartphone releases after the disastrous launch of the Galaxy Note 7.

    Samsung recalled the Note 7 phones after they started exploding and catching fire. Samsung executive Mark Notton says the company has done a lot of tests and is confident with the new phones.

    Gartner analyst Brian Blau says that to restore trust, Samsung needs to release phones that consumers will get excited about β€” but the mid-range A phones being released don’t have the same star power as Samsung’s S and Note series.

    The Galaxy S8 isn’t expected for a few more months.
    Everyone’s looking for ways to relieve stress. A U.K. company called Doppel says its wearable band can calm you down, amp you up and change your mood through rhythmic pulses on your wrist.

    Founder Fotini Markopoulou says your body will respond to the rhythm β€” just as fast music gets you going and slow music calms you down.

    The rhythm you feel can be adjusted by tapping or stroking the band.

    Why turn to a wristband to change your mood?

    Markopoulou says there aren’t many methods that are also natural. She says, “I can have a glass of wine that chills me, but I can’t work at the same time.”

    The band costs about $180 and will debut in the U.S. in the coming months. It’s being shown the CES gadget show, which runs through Sunday in Las Vegas.

  3. On January 6, 2017 at 10:01 am,
    CFS says:

    Bernie Sanders Supporters Launch Glass-Steagall Drive
    By Pam Martens and Russ Martens: January 6, 2017
    Northwest Ohio supporters of Senator Bernie Sanders’ in his run for President have launched a nationwide push to enlist other organizations to send it letters and take to social media to endorse a demand that President-elect Donald Trump fulfill a campaign pledge. Trump made the pledge on October 26 of this year in a speech he delivered in Charlotte, North Carolina, promising to enact a 21st Century Glass-Steagall Act to reform Wall Street. Such legislation has been sitting dormant in both the House and Senate for years.

  4. On January 6, 2017 at 10:06 am,
    Jason says:

    Hey Core! When are yall having Theralase back on the show? Their stock has run about 20% this week. Something must be brewing. I am a share holder and this is making me raise an eyebrow with interest.

    Thanks!

    • On January 6, 2017 at 11:34 am,
      CFS says:

      CORRECTION I was wrong.

      FLL Shooter appears to be Estoban Santiago, born 3/6/1990.

  5. On January 6, 2017 at 11:42 am,
    Robert Moriarty says:

    CFS:

    So are we supposed to hate Cubans now?

    • On January 6, 2017 at 12:33 pm,
      Dick Tracy says:

      LOL!

    • On January 6, 2017 at 12:48 pm,
      CFS says:

      He was born in New Jersey.

      Perhaps, if I must suggest a losson to be learned, is that the TSA and Homeland Security failed yet again.
      The Gunman reportedly flew into FLL on an Air Canada flight, retrived his gun from his luggage, loading it in a bathroom.

      Supposedly had a military ID. (Not yet demonstrated as his)

      I would like to know his prescriptive drug background . That could give a clue as to reason.

      My initial reaction, which I corrected as soon as I knew better, was that it was a person of Middle East Origin, since an eye-witness described him as thin, swarthy, with black hair.
      Considering recent events, it was a logically probable conclusion, that turned out to be wrong.

      • On January 6, 2017 at 12:55 pm,
        Dick Tracy says:

        CFS,thin, swarthy, with black hair, that could have been an Italian or a Greek, we mustn’t forget The Sacco-Vanzetti case. Remember the test of a country’s civilization lies in the way it protects the rights of minorities. DT

        • On January 6, 2017 at 1:09 pm,
          Jason says:

          I resemble that remark! I am half DAYGO their buster! The other half is Crout, Limey, and Redskin… πŸ™‚

          • On January 6, 2017 at 1:34 pm,
            Dick Tracy says:

            Jason, just to clear my point up when CFS mentioned thin, swarthy, with black hair, we should never jump to the conclusion that is a person from the middle east, my point was that person could be from anywhere. Stereotyping is wrong and should never be accepted in a civilized society. DT

          • On January 6, 2017 at 1:44 pm,
            OOTB Jerry says:

            yes, but, are you from New Jersey…………. πŸ™‚

          • On January 6, 2017 at 5:25 pm,
            CFS says:

            Stereotyping should never be accepted in a civilized society” Dick Tracy. I tend to agree.
            However, the line between profiling and stereotyping is rather fine.
            I would like to suggest I was thinking “swarthy” fits the typical profile, when I made a mistake.

            Given all the information that is now trickling out, I am totally convinced major errors were made by the FBI, the mental health establishment that treated the murderer and possibly the National Guard.
            Quite clearly this was a major failure by homeland security.

            I am sick and tired of elderly people being roughly treated by the TSA, when there has been not a single example of elderly people causing any terrorist attack. I travel a lot and have even travelled through FLL several times last year. I have long since believed that many TSA are hired on grounds of having a low enough IQ to just maintain a routine without any commonsense.

          • On January 7, 2017 at 5:15 am,
            OOTB Jerry says:

            ditto…..on the “common sense”, and the lack there of…………

        • On January 6, 2017 at 2:06 pm,
          CFS says:

          So how many Italians or Greeks have shot up crowds of innocent people recently?
          Any conclusion should be based on the totally of evident and circumstances.

          It took me 4 minutes to correct my error.

          AND we still don’t have confirmed legitimacy of his ID.

          Notice how it takes hours or days to identify Islamic origin; but minutes to identify non-islamic origin……just saying.

          • On January 6, 2017 at 2:07 pm,
            CFS says:

            totality

      • On January 6, 2017 at 2:59 pm,
        David says:

        Could be a CIA Agent with that description.

    • On January 6, 2017 at 6:31 pm,
      Jason Weishaupt says:

      Yes

  6. On January 6, 2017 at 1:53 pm,
    OOTB Jerry says:

    In all seriousness, this is a tragic event……

    • On January 6, 2017 at 1:58 pm,
      Dick Tracy says:

      Of course….

      • On January 6, 2017 at 2:12 pm,
        CFS says:

        Weirdly, the perp is being reported as shouting “I’m not Jewish” several times as he was firing.

        I fail to draw any conclusion from that fact.

        • On January 6, 2017 at 2:16 pm,
          OOTB Jerry says:

          Obviously the guy is mentally disturbed………

  7. On January 6, 2017 at 2:15 pm,
    CFS says:

    Air Canada is reporting they had no such person as Santiago on any of their flights.

    This in conflict with law enforcement statement.

    • On January 6, 2017 at 2:17 pm,
      OOTB Jerry says:

      I wonder why the TSA….. did not smoke the guy……

    • On January 6, 2017 at 2:20 pm,
      CFS says:

      In 2016 the perpetrator walked an FBI office in Alaska, reporting he was being forced to fight for ISIL.

      He was placed in a mental institution.

      My conclusion: He was not fighting for an Islamic cause. He is simply crazy.

      I would still like to know if he was prescribed an anti-depressant drug like fluoxitine.

      • On January 6, 2017 at 3:22 pm,
        GH says:

        My understanding is that the unmentionable thread connecting the vast majority of random mass-shooters is that they are on pharmaceutical psychotropics.

  8. On January 6, 2017 at 2:23 pm,
    CFS says:

    Fluoxetine and other SSRI drugs are known to produce similar behavior and violent suicides.

  9. On January 6, 2017 at 10:07 pm,
    CFS says:

    Who did not connect the dots?

    https://www.youtube.com/watch?v=oRWny4lSg_I