Week Ahead: August 24-28, 2020

Hello and welcome to my Week Ahead note where I discuss what happened last week, what to expect in the coming week, and anything else I feel like typing out. 

The biggest news to me last week was that the rally continued in stocks and the Democrats held their convention. I wrote a lot about the convention in my daily notes this week, but the message was that Trump is dangerous to our country and Joe Biden will restore general respect for one another and rule of law that applies to everybody, including the President. 

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Weekly performance: 

U.S. Indices
Dow flat at 27,930. S&P 500 +0.7% to 3,397. Nasdaq +2.7% to 11,312. Russell 2000 -1.8% to 1,550. CBOE Volatility Index +2.2% to 22.54.

S&P 500 Sectors
Consumer Staples +0.2%. Utilities -1.7%. Financials -3.4%. Telecom +1.7%. Healthcare 0.%. Industrials -1.5%. Information Technology +3.5%. Materials -1.3%. Energy -6.1%. Consumer Discretionary +2.4%.

World Indices
London -1.3% to 6,012. France -1.3% to 4,896. Germany -0.9% to 12,786. Japan -1.6% to 22,920. China +0.6% to 3,381. Hong Kong -0.3% to 25,114. India +1.5% to 38,435.

Commodities and Bonds
Crude Oil WTI +0.7% to $42.3/bbl. Gold -0.1% to $1,947.6/oz. Natural Gas +3.5% to 2.438. Ten-Year Treasury Yield +0.4% to 139.65.

Forex and Cryptos
EUR/USD -0.38%. USD/JPY -0.73%. GBP/USD +0.05%. Bitcoin -3.2%. Litecoin -1.2%. Ethereum -10.3%. Ripple -6.5%.

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Moving on to earnings: 

No really important earnings this week, but still some more looks at the conumser via Best Buy, Dicks, Nordstrom, Dollar Tree, and some food companies, banks, and a few more tech companies.

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I don't have much to say about the stock market. Some days I feel like the top of the bubble is here, others I think we still need to go even more parabolic/vertical before it's over. 

Regarding stock and their short-term gyrations, this week's major focus will be the Republican National Convention. It's so very important because Trump has to put together a presentation that wins the voters in the middle. If the RNC doesn't do that, I think stocks will start to price in a Biden Presidency and the return to reality. 

After last week's arrest of Steve Bannon, this photo came up. It's pretty hilarious and sad. And also spot on. For our TV star president to have moved this close to the "season finale" is just so fitting.

Back to the RNC: 

Trump has hired the producers of his show, The Apprentice, to put together the TV magic of the event. I haven't seen a speaker list, but know that the St. Louis couple that held guns in front of their house while protesters marched by are said to be involved. Perhaps to live out this image?

If it wasn't possibly true, it wouldn't be so sad.

In the data dump from one of the many ongoing investigations into Trump and the 2016 campaign, this piece of fan mail came out. A letter from Trump to Putin congratulating him on his victor. Was this the start of their friendship?

I'm pretty excited to watch the RNC and see their strategy to win the election. I wonder if it includes more than voter suppression and energizing the hateful folks of the party? I wonder if Trump is capable of delivering the capstone address that brings America together into his vision for our future. I highly doubt it. 

Anyhow, that's all I have today. Lots to do - running, painting, playing.

Good luck this week!