Today's Post - https://bahnsen.co/3My1KhW

Futures were as quiet as could be last night, and markets followed suit in a benign trading range that came off the lows mid day to close slightly higher and extend our November rally at least on the SP500. To be fair, we did come into November with only 17% of the SP500 having a positive three month return so were set up well for a rally and while the market did close higher yesterday the advance decline ratio on the NYSE was a dismal -1.6 to 1, so we are losing some steam here.

The top two weightings of the SP500 (one makes Windows and the other the iPhone), now make up 14.6% of the index and each have larger market caps than the entirety the UK FTSE 100, the French CAC and German DAX indices. To say the market remains top heavy in big tech is an understatement.

US and Chinese economic dependency on one another (one to make widgets and one to buy them), has continued to decline. The US now imports more from Mexico than from China for the first time since 2003, and China is recycling less of those dollars back into US Treasuries as a result. Both of these tie into why private foreign investors make up a larger piece of Treasury buying and why, in addition to slowing Chinese economic fundamentals, the Yuan has devalued against the dollar this year. All this and more in todays video podcast.

Links mentioned in this episode: