Top News Headlines

1. China devalues the Yuan. China lets Yuan float. China supports Yuan. Something happens in the Chinese currency market.
2. Oil prices continue to fall.
3. US raises flag over Havana. Dissidents’ invitation gets lost in the mail.
4. Tesla to sell more stock, profits elusive. Okay, very elusive. Okay, not frigging likely anytime soon.
5. Dow chart gets a death cross; stocks eke out a small gain.

Economic News

1. Inventories continue to rise. Price to sales ratios at recessionary levels.
2. Job opening contract.
3. Retail sales rebound.
4. PPI hotter than expected.
5. Autos lift Industrial Production; ex-autos barely budges.

Random Thought Of The Week

The Yen has fallen almost 40% against the dollar since 2012. The Euro has dropped roughly 20% against the dollar since early 2014. Markets took these currency moves in stride, US stocks rising steadily as the main currencies in the dollar index fell. The Yuan falls 4% one week and suddenly everyone is concerned about currency volatility, selling stocks like there is some kind of known link between Chinese currency stability and US stock prices. If the movement of US stock prices during the Yen and Euro devaluations is any indication, maybe we ought to be rooting for the Yuan to fall faster and further.

Chart Of The Week

Broad Market Top 10 – 3 Month Returns

Momentum Asset Allocation Model

SPDR Sector Returns – 3 Month Returns

SPDR Sector Rotation Model

Country Returns Top 10 – 3 Month Returns

Commodity Returns Top 10 – 3 Month Returns

Bond Returns Top 10 – 3 Month Returns

Stock Valuation Update