We have become accustomed to weather maps now colored in with a hue of red that seems to conjure up the depths of hell. Back in the day, they would use a picture of a smiling yellow sun. And now, it's used to emphasize severe declines in the market.

Only Safe Place: Pantry

The only safe place for investors on Friday was the pantry, or stock of companies whose products still dominate most household cupboards and pantries.

Utilities (XLU) stocks also caught bids during the session.

Fear is Back On

Market breadth was considerably bearish, especially on the New York Stock Exchange (NYSE), which saw more newer 52-week lows than highs.

Meanwhile, the down volume on the NASDAQ speaks to huge gains that many moved to bank rather than out of fear, in my opinion.

Market Breadth	NYSE	NASDAQ
Advancers	464	811
Decliners	2,329	3,897
New Highs	69	225
New Lows	120	171
Up Volume	1.03 billion	2.26 billion
Down Volume	4.37 billion	8.06 billion

But the Fear & Greed gauge swung all the way towards the shadow of Extreme Fear, which is considered by many to be a “buy signal.”

Cooler Heads

I said on Friday that what we were seeing was mostly bluster and saber-rattling ahead of the meeting between Xi and President Trump. China clarified on Saturday that they are not banning rare earth. Trump posted that Xi was having a bad day, but the meeting is still on. The financial market liked what it heard.

Equity Futures

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Today’s Session

Moves in rare earth and other strategic companies are through the roof this morning as Wall Street is getting in at this historic moment. I saw a piece, where even the WSJ, backed Trump on this latest round of saber-rattling.  At some point, they placed its country before parties and maximum profit margins.

This is the JP Morgan (JPM) I prefer, which has lineage back to the founder.

At the depths of the Panic of 1893, by 1895, the Federal Treasury was nearly out of gold. Morgan had put forward a plan for the federal government to buy gold from his European banks. Morgan came up with a plan to use an old Civil War law, allowing him to sell 3.5 million ounces of gold directly to the U.S. Treasury, restoring the nation’s financial surplus in exchange for a 30-year bond issue.

The episode saved the U.S., and to maintain the status quo in business, Morgan, steel magnate Andrew Carnegie, and railroad mogul John D. Rockefeller, along with some Wall Street bankers, donated heavily to Republican candidate William McKinley, who was elected in 1896 and re-elected again in 1900.

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