Macro Update: Flat (but telling), Latin American Cats -- And -- My Latest Musings

Mixing it up a bit, we'll do this week's macro update in writing...

For starters, our own general conditions index scored no change on the week, with an overall macro score of  29.17:

Quote of the Day: That's Risky

"Even though the S&P's hitting new highs I'm hard-pressed to find people that are really enjoying this and that are excited about this move. Most people that I know, professional traders, are all holding their heads down and complaining about how this is hurting and how nothing's working."

Morning Note: "Lean Into the Future"

Of all the companies to miss revenue expectations, in this environment, Amazon... Hmm... Its stock price this morning (off nearly 7%) says traders were caught a bit off guard. 

Of course it's not that Amazon is suffering in the least, it's that the operative word above is "expectations." And human nature being what it is, there's that "recency bias" (always anticipating more of the latest) that forever rocks markets as economic and market regimes begin to change... More on that in our upcoming macro update...

Morning Note: Know the Game You're Playing, and Know Your Opponent!

So, status quo it was for the Fed yesterday. Here's from this week's main message, posted yesterday:

This Week's Message: Immediate and Intermediate-Term Conditions

This week's main message comes from my most recent entry to our internal market log:

7/25/2021 Immediate and intermediate-term conditions:

Morning Note: The Trader's Ultimate Challenge

Three heavyweights (to put it mildly) -- Apple, Microsoft and Google -- per their after-the-bell earnings releases yesterday scored knockouts. I.e., they soundly beat analysts' estimates.

Morning Note: The Essential Challenge of Risk Management

If you're the type who cares to follow day-to-day market gyrations.. well, like I said last Tuesday, 

"One thing's for certain, it's going to be one volatile summer for asset markets!"

While heavyweight earnings releases (Apple, Google and Microsoft today) can certainly move the equity market, a Fed policy meeting announcement (tomorrow) can move everything.