[stock-ticker]

MACRO MORNING NOTE DECEMBER 26, 2017

SBA’s Alastair Williamson concludes the Macro Morning Note from Baltimore, Maryland

Asian stock markets were mixed overnight after much of the Western hemisphere was on holiday break. S&P futures are flat at 2,681 stalled for the past 5-6 sessions. The US reflation trade is mixed with a dollar stuck in the lower 93 handle and UST10Y testing a critical resistance at 2.50.

Starting in Asia, Japan’s Nikkie 225 index closed higher +.20% at 22,892 testing a 26-year high in thin holiday liquidity. Core consumer prices for November inched up for the 11th straight month, but mostly due to fuel costs. Minutes from the BOJ showed most members support extreme monetary policies. Can’t stop of the system breaks.

In South Korea, the KOSPI closed down -.54% at 2,427 as tech was sour on the session.

Regional stock markets in Mainland China closed mixed. The Shanghai Composite advanced +.78% at 3,305 and the Shenzen Composite gained +.43% at 1,892. In the region, industrials and financial services supported markets. PBOC refrained from OMO for the 3rd day in a row 50bn yuan drained from the market as reverse repos come due.

On Monday, Apple suppliers were clubbed after Taiwan media reported that Apple cut forecast of iPhone X sales in Q1 2018 to 30mln units from prev 50mln.

Australia, Hong Kong, and New Zealand stock markets remain closed on Tuesday.

In Europe, regional stock markets are mixed with DAX flat at 13,071, IBEX35 -1.19% at 10,182, and UK100 flat at 7,582. The EUR/USD is also flat at 1.18517.

In commodities, the big story is copper +1.24% at 3.278. WTI is flat on the session at 58.37. Precious metals: gold and silver continue to inch up– slightly higher at 7am est. NatGas is +3.14% at 2.7256 with cooler temps on the East Coast into early 2018.

La Nina for Northern Hemisphere

GSCI Index: Precious Metals, Industrial Metals, and Energy

Slight dollar bid coming from EU session

UST Yields, WTI, and S&P futures have mostly ignored the dollar.

Monthly Dow DJIA, Dow Asia, and Dow Europe

Stocks Over 50 Index for Small, Mid, and Large Cap are having trouble breaking over Oct highs.

Risk Parity (Weekly) hitting upper extremes

International HY and HY stalled

EEM/SPY Ratio golden cross nearing

SPX/VIX Ratio tagging upper extremes

US Consumer Sentiment at lofty levels

How the stock market remains propped up….

Global effort from Central Banks to flood the dying system with 0s1s..