The Closer — Digesting The Dollar, August GDP Okay In Canada, EZ + BZ Readings — 10/23/17
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Looking for deeper insight on global markets and economics? In tonight’s Closer sent to Bespoke Institutional clients, we take a look at the dollar and its drivers in the US rates market. We also review Canadian data and USDCAD, and two other international economic indicators released today in Brazil and the Eurozone.
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B.I.G. Tips – CAT Sales and Stock Keep Clawing Higher
ETF Trends: International – 10/23/17
Chart of the Day: Top Heavy ETFs
Bespoke Stock Seasonality: 10/23/17
Bespoke Brunch Reads: 10/22/17
Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.
See this week’s just-published Bespoke Report newsletter by starting a no-obligation two-week free trial to our premium research platform.
E-Commerce
Amazon and Big Apartment Landlords Strike Deals on Package Delivery by Laura Kusisto (WSJ)
In the latest round of innovation and experimentation from Amazon, large apartment complexes are introducing “hubs”; lockers for pick-up of goods shipped by the online giant. [Link; paywall]
The War To Sell You A Mattress Is An Internet Nightmare by David Zax (Fast Company)
Online mattress sales are booming, fueled by marketing tactics that range from the extremely aggressive to the absolutely absurd. [Link]
Brave New World
Stunning AI Breakthrough Takes Us One Step Closer to the Singularity by George Dvorsky (Gizmodo)
The complexity of Go was long thought to be a refuge for the human intellect, but the AI program which first beat a human grand master of the game has now gotten completely demolished by a much stronger version of the program. [Link]
This Is What A 21st-Century Police State Really Looks Like by Megha Rajagopalan (Buzzfeed)
A harrowing review of the crackdown on personal freedoms being suffered by the residents of Tianjian, China’s westernmost province with a large Muslim minority population. [Link]
Key Reinstallation Attacks (Krack Attacks)
This week, security researchers unveiled the troubling finding that wifi networks are much, much less secure than previously assumed. [Link]
Feeding the Hungry
After Maria, José Andrés and his team have prepared more hot meals in Puerto Rico than the Red Cross by Tim Carman (WaPo)
Since late September, chef José Andrés and his charity World Central Kitchen have served one million hot meals to Puerto Ricans. [Link; soft paywall]
A Philando Castile Memorial Fund Has Wiped Out All Student Lunch Debt in St. Paul by Rafi Schwartz (Splinter)
After the tragic killing of cafeteria supervisor Philando Castille, a charity set up in his memory started paying off lunch debts. It’s now cleared the slate of every school child in arrears for the whole city. [Link]
Crypto
Special Report: Backroom battle imperils $230 million cryptocurrency venture by Anna Irrera, Steve Stecklow, and Brenna Hughes Neghaiwi (Reuters)
In a tale as old as mediums of exchange, the huge no-strings-attached fundraising of the Tezos ICO created an incredible amount of human drama. [Link]
An Evening in Wonderland by Josh Brown (The Reformed Broker)
A good summary of the optimistic side of the crptocurrency world, where the sky is the limit and anything is possible (hypothetically, anyways). [Link]
China
Zhou Warns China Should Defend Against Threat of ‘Minsky Moment’ (Bloomberg)
Remarkably forthright and contingently negative commentary from a sitting PBoC official suggests that Chinese policymakers are well aware of what to avoid. [Link; auto-playing video]
Coming of age in an era of prosperity: Meet China’s ‘bubble generation’ by John Ruwitch and Anita Li (Reuters)
While the generation currently in power in China can remember the hardships of the pre-development system, their children don’t and will soon begin to take the reins. [Link]
Markets
Top Three Reasons the Corporate Loan Market Is Slumping in 2017 by Jacqueline Poh (Bloomberg)
Weak M&A activity, non-bank lending is ramping up, and corporate balance sheets are loaded with cash, making it hard for banks to find willing borrowers. [Link]
Volatility and the Alchemy of Risk (Artemis Capital Management)
We don’t necessarily agree with all the points made in this long, comprehensive market summary and outlook, but it does have some interesting data and makes for a unique read. [Link; 19 page PDF]
Fake Science News
Here’s How A Controversial Study About Kids And Cookies Turned Out To Be Wrong — And Wrong Again by Stephanie M. Lee (Buzzfeed)
Cornell professor Brian Wansink has once again been caught up falsifying data, this time misrepresenting the ages of subjects in studies related to making healthy food choices. [Link]
UK Politics
People Keep Trying To Start Pro-EU British Centrist Movements On Twitter by Mark Di Stefano & Jim Waterson (Buzzfeed)
In a weird episode this week, an Economist journalist accidentally started a political party. [Link]
Missives
This is the handwriting of Nepalese Yr 8 student Prakriti Malla which was recognised as the most beautiful handwriting in the world #writing by Dr Kirstin Ferguson (Twitter)
We’re blown away by the precision, intricacy, and aesthetic of this script. [Link]
The Lost Art of the Unsent Angry Letter by Maria Konnikova (NYT)
An ode to fiery script and penned vitriol written but never delivered, as has been the practice of Presidents, Prime Ministers, and other notables throughout history. [Link; soft paywall]
Economic Development
Can Sub-Saharan Africa Be a Manufacturing Destination? by Vijaya Ramachandran (Center for Global Development)
While Sub-Saharan Africa has extremely low GDP per capita, its labor costs relative to GDP are extremely high; that could be a huge hurdle for the growth of the African manufacturing sector. [Link]
Baseball
Expansion Could Trigger Realignment, Longer Postseason by Tracy Ringolsby (Baseball America)
The addition of big league teams to Portland and Montreal could bring about a 32 team league, with 4 divisions of 8 teams, more rest for players, and a wider postseason slate. [Link]
Apple
The iPhone 7 is reportedly outselling the iPhone 8 by Gordon Gottsegen (CNet)
With a staggered release of two phones, Apple appears to have pushed off consumer demand for the iPhone X, whose release is still pending. [Link]
Helpful Carrion
The Crowbar (Crowded Cities)
A remarkable project that seeks to train crows to fetch cigarette butts. [Link]
Food
Everything bagel seasoning is now on everything by Nicole Levy (AM New York)
The story of where the New York essential came from, or at least, where one man claims to have invented it. [Link]
Have a great Sunday!
The Closer: End of Week Charts — 10/20/17
Looking for deeper insight on global markets and economics? In tonight’s Closer sent to Bespoke clients, we recap weekly price action in major asset classes, update economic surprise index data for major economies, chart the weekly Commitment of Traders report from the CFTC, and provide our normal nightly update on ETF performance, volume and price movers, and the Bespoke Market Timing Model. This week, we’ve added a section that helps break down momentum in developed market foreign exchange crosses.
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See tonight’s Closer by starting a two-week free trial to Bespoke Institutional now!
The Bespoke Report — Night and Day
ETF Trends: US Sectors & Groups – 10/20/17
S&P 500 Quick-View Chart Book: 10/20/17
Each weekend as part of our Bespoke Premium and Institutional research service, clients receive our S&P 500 Quick-View Chart Book, which includes one-year price charts of every stock in the S&P 500. You can literally scan through this report in a matter of minutes or hours, but either way, you will come out ahead knowing which stocks, or groups of stocks, are leading and lagging the market. The report is a great resource for both traders and investors alike. Below, we show the front page of this week’s report which contains price charts of the major averages and ten major sectors.
As seen in the charts below, the only major average that didn’t hit an all-time high this week was the Russell 2000, but it remains at extremely extended levels. In terms of individual sectors, Industrials, Materials, and Technology all hit new highs.
To see this week’s entire S&P 500 Chart Book, sign up for a 14-day free trial to our Bespoke Premium research service.