Today Art Cashin covers everything from Rome to China, Trump and overseas trading.
On This Day…
September 26 (King World News) – Art Cashin: On this day (+2) in 48 B.C., one of ancient Rome’s most brilliant generals, a certain Pompey the Great landed on the shores of Egypt. (Mr. Cashin! Yes Sister? Please try to remember the general’s name is pronounced Pom-pea; Pom-pay was the name of the city buried by the eruption of Vesuvius in 79 A.D. If you don’t pay more attention, you’ll never remember enough history to get out of the 6th grade, let alone enough to ever help you in business! Do you understand??….Yes Sister!!)
Anyway, flashbacks aside, Pompey landed in Egypt kind of “on the run.” As you may recall from earlier episodes (or from the 6th grade), Rome was going through a parliamentary crisis.
A popular general and possible reformer named Julius Caesar had been busy dividing Gaul into three parts and sending reform suggestions to Rome. The Roman Parliament (pronounced “Senate”) sent a nasty note (on parchment) to said Caesar – saying he had a lot of Gaul and ordering him to come home and retire and (P.S.) to please leave his army behind.
Said Caesar headed home and took the army with him (across the Rubicon don’t-cha know!). Since that was considered bad form (pronounced formus stunkus), the Roman Senate called upon a former war hero for protection. The guy they picked was Pompey the Great (page 6 in your program) – victor over Spanish Rebels (76 B.C.), over a certain “Spartacus” (72 B.C.) and over that early Hitler, King Mithridates (63 B.C.).
Despite this veteran’s record, said Caesar made salad out of Pompey at the Battle of Pharsalus. (Beating him badly with an army half the size of Pompey’s.)
This led Pompey to flee to his last known ally, Ptolemy XIII (pronounced Friday the 13th), King of Egypt and the Nile Delta. Ptolemy XIII (age XV) was at war with his pudgy sister. So, with Ptolemy XIII needing no new enemies (i.e. said Caesar), Ptolemy had his old ally assassinated (i.e. Pompey, who was stabbed as he got off the boat). Said Caesar sensed that such habits did not make Ptolemy XIII (age XV) a great candidate for new best friend. So, said Caesar threw in with the pudgy sister named Cleopatra. What happened next…I forget! (Sorry Sister!!)
At the opening bell, traders wondered if they were facing a political Rubicon as the impeachment headlines filled the newsticker. By midmorning, however, it looked like they may have only stepped in a puddle or two.
If you were wondering what geo-politics or economic events most influence the U.S. stock market, you got a very clear indication yesterday. Apparently, China trade currently superseded all other influences.
The U.S. stock market opened somewhat higher despite worried selling in foreign markets on fears of the destabilizing potential of the looming impeachment inquiry.
U.S. stocks quickly turned weaker as the summary of the Ukraine phone call was released. Within minutes of the release, stocks turned higher as traders quickly realized it was not the smoking gun Democrats had claimed.
Then the other shoe dropped.
The President, in a kind of throwaway line, said a trade deal with China might come sooner than most people assumed. Suddenly, nothing else mattered. Not impeachment, not Brexit, not Iran, not the spread of drones.
Stocks quickly moved higher with the trade beneficiaries leading the way. Better still, they managed to hold virtually all of those gains throughout the day, unmoved by political headlines and impeachment chatter.
Also helping the bulls a bit was a report that U.S. single family homes sales rose more than expected, rising to one of the highest readings since 2007.
The tech sector was also an upside leader with most of the FANG stocks moving higher.
Crude moved lower and yields rose a bit but the China comments seemed to sweep away all such headwinds.
Overnight And Overseas – Asian equity markets are all over the lot in somewhat lighter trading. Tokyo closed fractionally higher and Hong Kong had a modest gain. Shanghai saw a moderate loss, while India rallied into the close.
In Europe, stocks are trading generally higher. London is seeing a solid rally, while things are moderately higher in Paris and Frankfurt.
Among other assets, Bitcoin is looking to build of a base, now trading just under $8500. Gold is a shade higher and crude is unchanged, with WTI trading around $56.50. The euro is flat against the dollar and yields are unchanged to down a tick.
Consensus – The whistleblower challenge is expected to be released today. Those who have seen it claim it holds no dynamite. That will not prevent partisans on either side from claiming that it absolutely proves their side of the argument.
We get an absolute saloonful of Fed speakers today, which raises the probability that one, or more, of them will say something market moving.
Stay wary, alert and very, very nimble.
Gold Correcting/Consolidating, Recession & Trump Card
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More articles to follow…
In the meantime, other important releases…
GOLD TUMBLES $30: Here Is An Extremely Short But Important Gold & Silver Update CLICK HERE TO READ
Celente – The Price Of Gold Is Going To Spike Well Above $2,000 Before The Greatest Depression Strikes CLICK HERE TO READ
Gold Surges Above $1,530 As Bitcoin Breaks Down, Plus A Look At The Walmart Indicator And US Households CLICK HERE TO READ
The Price Of Gold Is About To Explode, Plus Look At Bubble Warning I & II CLICK HERE TO READ
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