Traders shrugged off inflation numbers as they once again pushed the Dow and SP-500 to new records.  When good news is a reason to buy, and bad news is a reason to keep buying, it makes me concerned about the damaging effects of complacency in the longer term.  There is no doubt the DIA, SPY, and QQQ trends are bullish.  So stay with them as long as they last, but never forget this wild bullishness will not last forever.  Avoid chasing already extended stocks and guard against overtrading as this bull party continues.

Overnight Asian markets traded lower as currencies due to the weaker dollar.  European markets trade mixed with modest gains or losses as pandemic concerns weighs on investors.  Ahead of a dwindling number of earnings reports and the latest reading on Jobless Claims and PPI U.S. currently point to modest gains but new records at the open. 

Economic Calendar

Earnings Calendar

On the Thursday earnings calendar, we have a busy day with more than 260 companies listed, but a significant number of them have not confirmed.  Notable reports include DIS, ABNB, BIDU, BAM, CSIQ, TAST, BAP, CYBR, DASH, FRGI, GDRX, IQ< LZ, LAZR, MDP, MIDD, PLTR, PTE, & WPM.

News & Technicals’

The Competition and Markets Authority said it the purchase of Giphy by Facebook will harm competition.  They warned the deal would remove a potential challenger in the display advertising market. In addition, a U.S. bipartisan bill aims to shake up how Apple and Google run their mobile app stores in similar news.  App developers have claimed unfair practices from the tech giants, and the bill hopes to allow more competition into the app markets. According to Professor Sir Andrew Pollard, the head of the Oxford Vaccine Group said with the highly infectious delta variant achieving herd immunity is not possible. 

Traders and investors shrugged off inflation numbers yesterday, pushing the Dow and SP-500 up, setting more new records.  When bad news becomes a reason to buy up the market, and good news inflates it, even more, we must become concerned about market complacency.  That said, the trends are very bullish in the DIA, SPY, and QQQ, and the premarket pump suggests more records at the open.  We have one potential stumbling block with the weekly jobless claims, but we have seen missing on that number can also be ignored.  So stay with the trend and party like its 1999 as long as it lasts but, please guard yourself against complacency and the desire to overtrade these very lofty valuations. 

Trade Wisely,

Doug