Need to Know: Full-throttle economy can keep bull market running, says Saut

It may not feel like it today — especially for Netflix  shareholders — but Jeffrey Saut, chief investment strategist at Raymond James, says we could be in the midst of a “buying stampede.”

That’s a phrase Saut claims he coined way back in the 1970s to describe rallies typically lasting somewhere between 17 to 25 sessions, with only brief pauses of up to three sessions. Four sessions in negative territory, and poof, just like that, the stampede is over.

“It appears to be the rhythm of the thing in that it takes that long to get everybody bullish enough to throw in the towel and ‘buy ‘em’ just in time for a trading top to arrive,” the strategist writes .

If this is, indeed, one of those stampedes, says Saut, who provides our call of the day, we’re just 11 sessions into it, which means a burst of buying is on the way. Overall, he describes the current climate as a “stealth bull market” that’s setting up to deliver more all-time highs for the major stock indexes.

Why stealth? He recently that while the Dow  is just barely higher for the year, the S&P SmallCap 600  and the Nasdaq  are both up double digits.

“Clearly, the U.S. economy is hitting on all cylinders and business optimism, for whatever reason, is leaping,” Saut said. “We will get more news on the economy this week.” (See The economy section below for more on that).

As it stands now, not much of a buying stampede.

The market

Stocks , and there’s not much upside today. The Dow   , S&P 500  and Nasdaq  are all lower. Europe  managed to log some minimal gains, after Asia markets  . Gold  is trading off, while  can’t quite find its footing after .

Speaking of stampedes, one could be taking shape in cryptos. Bitcoin   its biggest increase in two weeks and is up nicely again this morning, briefly trading north of $6,750.

See for the latest action.

The chart

“But the P/E Was Only 260!!!!” That’s how the Slope of Hope blog’s Tim Knight started on Netflix’s abysmal after-hours action. “As I have no position at all in Netflix, I feel within my rights to respond to the stock getting the Kevin Spacey treatment after hours,” he wrote.

“Give me the same result with Amazon on the 26th,” Knight wrote, “and we can FINALLY be done with this goddamned bull market.”

Netflix shares  bounced off the lows just slightly, but are still down more than 8% after the company late Monday posted for the second quarter.


The quote

“Having sold out our nation on an international stage, Mr. Trump will now explain it all to Sean Hannity and Tucker Carlson? I’m guessing RT and Sputnick [sic] were unavailable. He owes it to our nation to sit down with a serious journalist” — Former FBI director joining in on President .

Does the Daily News count? Check out today’s cover:

And what about that hard-hitting interview with Sean Hannity? Here are , courtesy of Vox.

Don’t miss:

The buzz

The numbers might have been there for Amazon , but Prime Day’s . If you spent any time trying to click on the items on sale, there’s a high likelihood you came across an image of some dog with this message: “Sorry, something went wrong on our end.” The e-commerce extravaganza is and it appears to be going smoother.


That hotly anticipated Uber IPO appears to be taking shape. CEO Dara Khosrowshahi confirmed Monday that the ridesharing company’s debut is even if its profits don’t improve by then. Meanwhile, Uber’s facing .

Papa John’s  founder says it was a “mistake” to after his racist slur.

 ,  and posted earnings before the bell, while CSX  and United Continental report after the close.

Goldman also to succeed Lloyd Blankfein as CEO in a couple of months, following that this could happen.

The stat

$113 million — That’s how much it cost to make Asura, China’s most expensive movie ever released. It could also become the biggest flop of all time. The movie was reportedly after its horrendous opening weekend when it made just over $7 million. Ouch.

The economy

We’re set to hear from Federal Reserve boss Jerome Powell at 10 a.m. Eastern, when he delivers his testimony before a Senate committee.



Before Powell’s appearance, the Federal Reserve is slated to release data on industrial production and capacity utilization. We’re also due to get a fresh reading on a housing market index.


Random reads

Work for Trump? and quit now!

The Navajo Nation made for gun maker Remington.

Lava bombs are as they sound.

Americans, there is .

This National Park is a “,” yet very few people every visit there.

Here’s the first time captivated the country.

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