The Dow Jones Industrial Average (DOW) and the S&P 500 .08/13/2020 2:45:59AM EST. At their Aug. 6 teleconference meeting, Ramona Community Planning Group (RCPG) members considered options for possibly closing Boulder Oaks Preserve on Red Flag Warning Days, and recommended separate approvals for a license to sell beer and wine at the planned Aldi Market in Ramona and installing lights at Wellfield Park. Fair or foul? One NFL writer called Steve Keim’s draft record “laughingly bad” and the way he handled one trade “shockingly inept.”
Posted: Aug 12, 2020 1:21 PM
The Dow Jones Industrial Average (DOW) and the S&P 500 had rallied seven days in a row. It was on the cusp of making it eight, and then the wheels came off. There was something climactic about the session that revealed itself once the rally stalled, and profit-taking began to chip away gains.
The action is not unusual, but it’s been some time since we’ve seen that kind of turnaround. The Dow made a 460-point swing, while the S&P 500 reversed 48 points from its session high point. The NASDAQ Composite staged an impressive midday rebound before stumbling hard.
The big-time rally fizzled in the final hour of trading as several news items hit the tape.
Congress & Stimulus
Senator Mitch McConnell went on TV and said that neither side had spoken. It appears both parties have drawn a line in the sand. Make no mistake – the market assumes there will be an additional fiscal stimulus -and suddenly, it feels as though Congress might blow it. President Trump’s executive orders help, but it is not the complete package needed to keep the rally moving.
The market bullied Congress into a weekend session when the stimulus bill deadline expired. Perhaps it was time to send our lawmakers a fresh message. I think it is critical to keep this rebound going to be a true recovery. There must be one more fiscal nudge.
The Big Ten announced it was canceling its 2020 football season, which was rumored to happen. It drives home the continued challenges of operating in the world of COVID-19.
Apple & China
Yesterday, there was also a report out late about dramatically slowing smartphone sales in China, and the potential impact on Apple (AAPL). Shares of Apple (AAPL) closed at $437.50, down from the $449.85 high of the session. During the session, more than 45 million shares changed hands, up from the daily average of 36.6 million shares.
The Message of the Bond Market
I was thrilled to see the ten-year Treasury get a six handle yesterday after opening at 0.583%. The yield rallied to 0.662% before settling at 0.642%.
Less than a week ago, the ten-year yield tumbled to 0.510%, leading many to say negative rates were a forgone conclusion.
It was a perfect split decision for the NYSE with advancers equaling decliners and the up volume equaling the down volume. There was obviously more selling pressure on the NASDAQ, as growth continued to stumble.
I am going back to my childhood and a goofy American original variety television show called, “The Banana Splits Adventure Hour,” to describe how much fun I think the dual August 31st stock splits of Apple (AAPL) and Tesla (TSLA) will pump up individual investors.
- Tesla will split five-for-one
- Apple will split four-for-one
Do not take that day off.
Yesterday, we took profits in Consumer Discretionary and Healthcare, and added a new Consumer Discretionary stock. This morning, we took profits on an Industrial name and are adding a new position in Technology in our Hotline Model Portfolio. To get started on the Hotline today, contact your account representative or email Info@wstreet.com.
Yesterday evening, former VP Biden announced he has chosen Senator Kamala Harris to be his VP candidate in the race for the White House.
There is a lot of debate over how safe a pick she is and what she brings to the ticket. From an investor point of view, I worry about higher taxes than Joe Biden is advertising, and other onerous rules designed to redistribute wealth. There must be smarter ways to spread organically generated wealth in America. Taking it from one group and giving it to another, with the Federal government taking the biggest chunk as the middleman, can only happen for a limited time before that well runs dry.
Equity futures are looking to rebound this morning, although, there is not any new news per se. I think it’s going to be a great litmus test on the value rotation trade as much of this year growth stocks, especially those Mega Cap names have been safe havens.
It is interesting that the biggest losers yesterday were historic safe havens; Utilities and Real Estate but also the 2020 safe havens Technology and Communication Services.
It was the most impressive session for Financials of the year, as the sector held up nicely and was led by those large money center banks.
S&P 500 Index
Communication Services XLC
Consumer Discretionary XLY
Consumer Staples XLP
Health Care XLV
Real Estate XLRE
We have had Apple (AAPL) in the model portfolio for years and are up about 400% on our original investment. We have been reluctant to feature it as a new idea, but traders should expect a pop in the stock around the 4-1 split on August 31.
There is of course the anxiety that always revolves around the scuttlebutt on Apple’s business in China. Yesterday, the report was smartphone demand was declining. Today’s report from Apple’s supplier Foxconn said it sees smartphone demand off the lows.
The splits have been huge buying opportunities in the history of the stock.
To see the chart, click here.
Author: Charles Payne
RCPG members take stands on Boulder Oaks, Aldi Market and Wellfield Park
At their Aug. 6 teleconference meeting, Ramona Community Planning Group (RCPG) members considered options for possibly closing Boulder Oaks Preserve on Red Flag Warning Days, and recommended separate approvals for a license to sell beer and wine at the planned Aldi Market in Ramona and installing lights at Wellfield Park.
In a 14-0-1 vote with RCPG member Kevin Wallace abstaining, the planning group approved of recommending to the San Diego County Department of Parks and Recreation that mandatory closures of Boulder Oaks Preserve be instituted during the National Weather Service’s Red Flag Warning Days. In the same vote, RCPG members approved to reconsider a draft Mitigated Negative Declaration for Boulder Oaks at their next meeting Sept. 3 in order to give the group more time to review the project.
Boulder Oaks is a proposed 2,000-acre preserve that is not yet open to the public but is planned by the county to have trails, two vehicle staging areas, one equestrian staging area, renovated restrooms and fencing at the site more than 1-½ miles from state Route 67 on Mussey Grade Road. Red Flag Warnings are issued when warm temperatures combine with very low humidities and stronger winds to create increased risk of fire danger.
Lorrie Bradley, environmental planner at the county Department of Parks and Recreation, said the preserve has been planned for seven years, during which time the county has worked with the Mussey Grade Road Alliance to address a range of topics including parking and traffic circulation, fire safety and evacuation. Plans have not been finalized as design and California Environmental Quality Act elements are still in the works.
Mussey Grade Road Alliance representatives said wildfire safety would be much more manageable for Mussey Grade residents and Boulder Oaks visitors if the preserve could be closed on Red Flag Warning Days. Numerous homes in the area were destroyed during the 2003 Cedar fire and emergency response can be risky on the dead-end road that has been dubbed the “Tunnel of Death” by firefighters, they said.
Mussey Grade Road Alliance Treasurer Chris Meador said the draft Mitigated Negative Declaration being recirculated by the county for comments falls short of ensuring an adequate fire safety plan. Other Alliance members shared concerns about flames leapfrogging across Mussey Grade’s canopy during Santa Ana wind conditions in the Cedar fire.
RCPG members considered the South Subcommittee’s 6-1 recommendation in favor of RCPG requesting the county Parks and Recreation implement mandatory closures of Boulder Oaks on Red Flag Warning Days.The South Subcommittee had also approved 7-0 of recommending that the RCPG ask county Parks and Recreation to conduct an Environmental Impact Report to address potential impacts to the preserve, particularly those impacts related to fire safety.
Several RCPG members said they would support Red Flag Day closures at the preserve to help protect residents, the preserve’s visitors and other visitors to the nearby The Church of Jesus Christ of Latter-day Saints camp. Evacuations could be complicated by hikers dispersed across trails and horse trailers clogging exit routes, they said.
Bradley said the county does not typically close preserves on Red Flag Days as a general policy, although the county Parks and Recreation director can authorize closures. Bradley added that the county is not anticipating large crowds at the preserve because there is no significant attraction such as Potato Chip Rock at Mt. Woodson and waterfalls at Cedar Creek Falls. Consideration has also been given to no parking areas and possible use of technology such as live streaming parking spaces so visitors can be informed of parking availability in advance.
In a separate item, RCPG members unanimously approved to recommend an Alcoholic Beverage Control license be issued to the Aldi Market grocery store planned to be built at the northwest corner of 16th and Main streets. The license would allow sales of beer and wine at the store with off-site consumption of the beverages.
Aldi Director of Real Estate Skip Janes said the Aldi store is expected to begin construction in September and to open in Ramona sometime during 2021. The company has been selling beer and wine for several years in response to demand and to complement grocery sales, he said. Stores typically stock more than 100 types of wines and roughly a dozen beer brands.
Janes said Aldi representatives may consider selling wines produced in Ramona and are making preliminary plans to incorporate a mural on their building.
In other action, RCPG members approved 10-3-1-1, with Jim Cooper, Donna Meyers and Casey Lynch opposed, Debbie Foster abstaining and Paul Stykel absent, to ask the county to allocate $700,000 in Park Land Dedication Ordinance (PLDO) funds to install and improve lighting for the sports complex including soccer and softball fields at Wellfield Park.
The lighting will complement Wellfield Park improvements currently underway that include horseshoe pits, a disc golf course, two sports fields, and girls softball scoreboards.
Ramona Parks and Recreation Association Executive Director Dawn Perfect said PLDO funds collected through developer fees had a balance of $1.83 million before Ramona Municipal Water District awarded a $541,800 contract for the park improvements. The remaining balance is approximately $1.29 million, although $250,000 has been earmarked for a Ramona skatepark, leaving a balance of $1.04 million, Perfect reported.
Two Wellfield Park users, Ramona Municipal Water District Director Jeff Lawler and Ramona Soccer League Coach Becky Ocampo, spoke in favor of installing and improving lighting at the park to allow more recreation at night.
RCPG Chairman Casey Lynch objected to spending a large amount on the lighting improvements when consideration should be given to other park projects. Also, he urged the RCPG to inform the public about PLDO funds and their possible uses in the community with an announcement in the Ramona Sentinel.
“This is a great deal of money for a small amount of improvements,” Lynch said. “We need to get the information out and allow the public to comment. It would be irresponsible not to do that given the dollar amount.”
RCPG member Robin Joy Maxson also expressed concern about spending a large amount of money collected from developers when there is not a lot of planned development on the horizon in Ramona.
Several others supported spending money on tangible projects rather than delaying projects as costs to implement them increase.
“There is no other area in the community that gives us more recreational use and the need for lighting will not go away,” Perfect said.
Author: By Julie Gallant
Arizona Cardinals’ Steve Keim slammed in 2020 NFL GM ranking as ‘shockingly inept’
The Arizona Cardinals’ Steve Keim received rave reviews for trading for DeAndre Hopkins in the offseason, but one NFL writer still has major questions about the general manager.
For the Win’s Steven Ruiz slammed the GM in his 2020 NFL GM ranking, where he had Keim ranked No. 23 in the league.
Ruiz called Keim’s draft record “laughingly bad” in the ranking and questioned the way he handled the trade of Josh Rosen last season as “shockingly inept.”
He wrote: “Keim deserves credit for making the unconventional moves of hiring a college coach with a mediocre record and drafting an inexperienced 5-foot-10 quarterback with the first-overall pick. But the reason Kliff Kingbury’s and Kyler Murray’s debut seasons were so impressive was the lack of talent they had to work around. That falls on Keim. Perhaps it’s not too late for him to turn things around, but his draft record is laughably bad, he hasn’t done much better in free agency and the way he handled the Josh Rosen trade was shockingly inept.”
MORE:DeAndre Hopkins trade fallout continues: NFL executives praise Cardinals, slam Texans
Those are some pretty harsh words.
Other GM rankings weren’t quite as hard on Keim, even praising the general manager.
NFL.com’s Gregg Rosenthal ranked Keim No. 18 in the NFL among GMs (he didn’t include new general managers in his ranking).
He wrote: “Give Keim and the Cardinals credit for quickly fixing a mistake. The Steve Wilks/Josh Rosen-era Cardinals did not capsize Keim’s career because he didn’t allow it to become an era. Kyler Murray should help end a grisly history of first-round picks by Keim, who has done his best work in trades for Chandler Jones, DeAndre Hopkins and Carson Palmer. Keim asking for that fourth-round pick back from Bill O’Brien in the Hopkins trade was the most cold-blooded move of 2020.”
Sporting News’ Vinnie Iyer had Keim No. 23 on his list.
He wrote: “After a forgettable 2018 with the drafting of Josh Rose and trouble away from the game, Keim, who won SN executive of the year in 2014, appears to back on track professionally and personally. Kyler Murray is headed to living up to his No. 1 overall status, and Keim has supported him better with keen trades for Kenyan Drake and DeAndre Hopkins. The Cardinals also were able to lock left tackle D.J. Humphries and draft his bookend, Josh Jones. It’s been a little tougher to get it rolling defensively, but getting Isaiah Simmons and Jordan Phillips points the arrow back up there.”
MORE:Arizona Cardinals’ Steve Keim earns rave reviews for DeAndre Hopkins trade, other moves
Rotoworld’s Patrick Daugherty also had Keim at No. 23.
He wrote: “The easy part — taking Kyler Murray — is over for Steve Keim. What comes next? As it turns out, it was drafting yet another defensive tweener in the first round. There is no reason Isaiah Simmons can’t be a star. The same was also true of previous Keim selections Haason Reddick and Deone Bucannon. That is to say nothing of the players who actually had positions, like Josh Rosen, Robert Nkemdiche and Jonathan Cooper. Shaky drafter or not, Keim still managed to win his second consecutive offseason, acquiring DeAndre Hopkins for the price of David Johnson and a second-round pick. He also snagged Kenyan Drake for a bag of footballs last October. Keim was just fine when he had an engaged Bruce Arians to drag him along. The core of Kliff Kingsbury, Chandler Jones, Murray and Hopkins may be ready to do the same thing.”
The Score ranked Keim at No. 19 in its general manager rankings.
It wrote: “Keim kicked off his solid early seasons as Cardinals GM by trading for quarterback Carson Palmer and hiring head coach Bruce Arians. When this duo started to decline, Arizona struggled to upgrade its roster, mostly due to bad draft classes. Going after quarterback Kyler Murray and coach Kliff Kingsbury last season – just a year after adding Josh Rosen and Steve Wilks – were moves that should change Keim’s reputation moving forward. The Hopkins trade this offseason may solidify the Cardinals’ rise to a new level.”