Five days ago, we issued REPORT G-101 PERSPECTIVE 6.11.2020, which declared “not to panic” and “retain long term positions in equities exclusively on the Federal Reserves indication to support U. S. securities.” Meanwhile, major brokerage house signaled a “SELL and to reduce exposure to the equity markets.” They are the same “actors” who claimed a “V-shaped recovery in common stock was impossible.”
Again, G-101 was right on the “V” recovery and as the S&P 500 index remaining above 3,000.
The Federal Reserve added $90.8 billion in short-term money to financial markets on Tuesday. The Fed added money in two repurchase-agreement operations, or repos. The overnight intervention added $58.6 billion, while a 14-day repo added $32.2 billion. This event underscores are belief the t Fed as establish a “put” and decided to support common stock are current levels.
Indeed, the performance of the algorithm, G-101, is second to none, and the only reliable source to save your investment portfolio from losses and grief. FACT-CHECK IF YOU DESIRE.
G-101's record speaks for itself.
Hers’s our Commentary Summary for June 16, 2020
FIRST LOOK – June 16, 2020
S&P 500 likely will test 3230 on the upside to confirm further action by the Federal Reserve to buy corporate bonds (a first for the Feds) and more noise from Europe on “potential” cure for virus. Hedge funds and professional traders remain are behind the curve. Feds adding more liquidity to create more cash on buy equities. Don’t buy into the upside panic. Allow 3230 to be penetrated on the upside. In the interim use 3023 as support.
TODAY’S ACTION: The S&P 500 futures trade 50 points, or 1.6%, above fair value to pick up right where the market left off yesterday. News that President Trump is preparing a $1 trillion infrastructure proposal, has aided risk sentiment this morning. Airline, cruise line, banking, and energy industries, are up noticeably in pre-market action. The mega-cap technology stocks are also trading higher but are performing in-line with the equity index futures.
In Washington, Fed Chair Powell's first day of his semiannual monetary policy testimony will be in focus, starting at 10:00 a.m. ET, a day after the central bank announced it will start buying individual corporate bonds. On a related note, the Bank of Japan made no headline policy changes but raised its special lending program to JPY110 trln from JPY75 trln, as expected.
· Retail Sales for May (G-101 consensus 9.0%) at 8:30 a.m. ET
· Capacity Utilization (G-101 consensus 67.9%)
· Industrial Production (G-101 consensus 3.0%) for May at 9:15 a.m. ET
· Business Inventories (G-101 consensus -0.4%)
· NAHB Housing Market Index for June (G-101 consensus 45) at 10:00 a.m. ET.
U.S. Treasuries are trading lower, pushing yields higher in a curve-steepening trade. The 2-yr yield is up two basis points to 0.20%, and the 10-yr yield is up four basis points to 0.74%. The U.S. Dollar Index is flat at 96.74. WTI crude is up 1.9% to $37.82/bbl amid an IEA forecast for a record rebound in oil demand in 2021.
Major European indices trade with solid gains across the board. STOXX Europe 600: +2.6%, Germany's DAX: +3.0%, U.K.'s FTSE 100: +2.5%, France's CAC 40: +2.5%, Italy's FTSE MIB: +3.5%, Spain's IBEX 35: +2.8%.
From yesterday perspective: The global equities have picked up where US markets left off with advances across the board. S&P Futures are trading about 1% higher to around the 3095 area. The market advanced immediately following the evening open, leaving the low print of 3060.25 in the dust. The overnight high currently resides at 3113.50.
In Asia, the major markets advanced as well, with the Nikkei outpacing all with nearly a 5% rise on Tuesday. Japanese stocks got a boost after the Bank of Japan increased its lending facility by $300 billion, to $1 trillion. Heavyweight names such as Panasonic, Honda and Toyota all advanced over 5%. In China, the Shanghai rose after a slight downtick in coronavirus cases from the prior day.
In Europe, the major bourses are all trading over 2% higher. The tone seen in the US and Japan has resonated throughout the EU. Many of the beaten down names from Monday are rebounding strongly today. Travel-related names such as TUI Group and easyJet are both 8% higher. German Airliner Lufthansa is 4% stronger. Financials are also among the leaders with names such as Credit Agricole, Societe Generale and BNP Paribas all up around 5%.
From yesterday perspective: The global equities have picked up where US markets left off with advances across the board. S&P Futures are trading about 1% higher to around the 3095 area. The market advanced immediately following the evening open, leaving the low print of 3060.25 in the dust. The overnight high currently resides at 3113.50.
In Asia, the major markets advanced as well, with the Nikkei outpacing all with nearly a 5% rise on Tuesday. Japanese stocks got a boost after the Bank of Japan increased its lending facility by $300 billion, to $1 trillion. Heavyweight names such as Panasonic, Honda and Toyota all advanced over 5%. In China, the Shanghai rose after a slight downtick in coronavirus cases from the prior day.
In Europe, the major bourses are all trading over 2% higher. The tone seen in the US and Japan has resonated throughout the EU. Many of the beaten down names from Monday are rebounding strongly today. Travel-related names such as TUI Group and easyJet are both 8% higher. German Airliner Lufthansa is 4% stronger. Financials are also among the leaders with names such as Credit Agricole, Societe Generale and BNP Paribas all up around 5%.
ABOUT GREENMARK 101
SP+GTM - Subjective Probability + Game Theory Model
Our system, is identified as Greenmark 101 or G-101, which accurately predicted the direction of the S&P 500 index 91.3% of the time and had a success rate of 84.9% on 248 stock ideas over the last two years. Not one investment firm or professional advisory entity has exceeded the performance of G-101 or its predecessors. The top 100 investment firms based in the U.S. had a weighted average success of 67% on their investment picks in a similar period, while 86% failed to predict the recent “V-shaped” recovery of the S&P 500 index. Note: For fact-checking purposes only, all records are available upon execution of our confidentiality agreement.
G-101 possesses 171 subdivisions of applied data fields designed to defect and predict values by converting anomalies into continuously complied information and process them with algorithms to forecast directions of financial markets and individual investment targets. Originally, the programs were developed to “track” all aspects of the marijuana and hemp industries and to formulate “best guess” scenarios to recognize investment opportunities. In 2018 to accommodate our website subscribers, we added additional fields to the original program to tract the public stock performable of all cannabis and hemp related companies. At this level, G-101 was 100% successful of all picks in the group and continued to report on our webpages that “investment in public cannabis plays was a fool’s game.”
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