Producer Prices Continue To Rise

They are now at their highest level since 2011(+3.4% year over year):

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Hat tip Charlie Bilello

DIS

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July Newsletter

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Read More:

https://mailchi.mp/6adc97a53c1f/july-newsletter-boomers-core-and-the-devils-workshop?e=d2c7836909

A Screaming Bull Market

In student debt.  If you’ve every struggled to make sense of soaring tuition, this chart explains it rather clearly.  Easy money for students and parents has made it very easy to push higher ed costs through.  The quality hasn’t improved a bit but the U.S. sure has ton of beautiful college campuses and layers upon layers of overpaid administrators. 

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This is a headwind that has no end in sight, yet. 

Hat tip Stephen Blumenthal/CMG Inc.

Never Quit

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Hat tip Steve Burns

WMT

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Record Shorts

Speculators have pushed net short positions in the 10 Yr. Note(Futures)to record levels:

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For bond bears(those expecting rates to rise)this is not good news.

Hat tip The Daily Shot

More on Yield Curve Inversion

It’s true, an inverted proceeded the last nine recessions.  But, there was quite a bit more of the expansion ahead before a downturn in the economy.  On average, 21 months:

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Hat tip Ryan Detrick

Is Kulicke & Soffa Ready To Climb?

klic

Back in late May shares of semiconductor equipment make Kulicke & Soffa surged following a very positive update to its second quarter earnings report .  KLIC closed on May 31st with a 5% gain on its highest upside volume of the year.  Up until late last week the stock has been consolidating in a very narrow range while an upward sloping 200 day moving average held the lows.  This healthy action ended of Friday after shares blew past heavy resistance near the May/June highs.  As a new week begins KLIC is set up well for more upside.

Trade notes:   KLIC is working on its second straight higher monthly low while the weekly MACD indicator remains near neutral.

Layers of support are now in place.  Top band is marked by the May/June highs($24.70-$24.65). 

KLIC has a very light short interest ratio(1.6).  A move higher will be powered by bullish investors, not forced short covering(buying).

A logical up side target is the 2018 peak set back in March at $27.00.

We believe KLIC is a low risk buy near current levels.  On the downside, a close back below the July lows($23.35)would be a clear warning sign of more consolidation ahead.

At time of publication we are long KLIC in some managed accounts.

 

 

PFE

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