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Second Gentleman Doug Emhoff acknowledged Saturday that he had an affair during his first marriage, years before he began dating Vice President Harris.

“During my first marriage, Kerstin and I went through some tough times on account of my actions. I took responsibility, and in the years since, we worked through things as a family and have come out stronger on the other side,” Emhoff said in a statement released to the news media after a British tabloid reported on the affair.

Emhoff and his then-wife, Kerstin Emhoff, divorced after the affair.

“Doug and I decided to end our marriage for a variety of reasons, many years ago,” Kerstin Emhoff said in a statement Saturday. “He is a great father to our kids, continues to be a great friend to me and I am really proud of the warm and supportive blended family Doug, Kamala, and I have built together.”

A person familiar with the situation, who spoke on the condition of anonymity to discuss sensitive details, said the affair was known to people who conducted the vice-presidential vetting process four years ago when President Biden was running for office. Harris knew about the affair before she and Emhoff married more than a decade ago, the person added.

Brian Fallon, a spokesman for the Harris campaign, declined to comment.

Doug and Kerstin Emhoff have two adult children, Cole and Ella Emhoff.

Kerstin Emhoff has been publicly supportive of Harris, the presumptive Democratic nominee, and called her an integral part of the family. She volunteered for Harris’s 2019 presidential run and attended the Biden-Harris inauguration in 2021 alongside Ella and Cole. Harris has called Kerstin Emhoff a “dear” friend.

When Republican nominee Donald Trump’s vice-presidential pick, JD Vance, suggested that Harris and other prominent Democrats “don’t really have a direct stake” in the country’s future because they are “people without children,” Kerstin Emhoff came to Harris’s defense.

“For over 10 years, since Cole and Ella were teenagers, Kamala has been a co-parent with Doug and I,” she said. “She is loving, nurturing, fiercely protective, and always present. I love our blended family and am grateful to have her in it.”

Emhoff gave his first statement about the affair to CNN after the Daily Mail, a British tabloid, published a story on the relationship early Saturday.

Trump, who has been married three times, has also been accused of infidelity but has denied such accusations. His alleged affair with adult film actress Stormy Daniels — and a $130,000 hush money payment ahead of the 2016 presidential election to try to keep it quiet — led to a criminal conviction earlier this year.

More than a dozen women have accused Trump of sexual misconduct. He has repeatedly denied wrongdoing. In January, a civil jury ordered Trump to pay the writer E. Jean Carroll more than $83 million for defaming her after she accused him in 2019 of sexually assaulting her two decades earlier. After one of her lawsuits went to trial last year, a jury found that Trump sexually abused and defamed Carroll and awarded her a combined $5 million in damages. That resulted in a separate jury hearing earlier this year to determine whether Trump owed Carroll additional damages.

This post appeared first on washingtonpost.com

ATLANTA — Former president Donald Trump congratulated Russian President Vladimir Putin over a prisoner swap that took place this week, saying the Russian strongman had outsmarted U.S. officials as part of the largest such deal since the end of the Cold War.

At a rally here on Saturday, Trump did not mention any of the American prisoners who were released in the deal — including Wall Street Journal reporter Evan Gershkovich, who was imprisoned for more than a year on charges the U.S. government has denounced as fabricated. In his previous comments on the deal, he did not mention any of the prisoners by name either, only criticizing the U.S. government.

“I’d like to congratulate Vladimir Putin for having made yet another great deal. … We have 59 hostages, I never paid anything. … Boy, we make some horrible, horrible deals. It’s nice to say we got ‘em back, but does that set a bad precedent,” Trump said.

He did not mention any of the U.S. officials who worked on the deal for months.

Trump had been reluctant to speak about Gershkovich for about the first year of the reporter’s detention but finally called for his release in May. The former president has repeatedly bragged about his close relationship with Putin, but also says that Putin respects him and would have never invaded Ukraine if Trump was president.

On several public occasions in recent months, Trump has said he would get Gershkovich released as soon as he was elected in November, and Putin would do it “for me, but not anyone else.”

Trump seemed to lash out at the deal Thursday after it was trumpeted by President Biden and Vice President Harris, who met the prisoners at Joint Base Andrews in an emotional ceremony.

“Just curious because we never make good deals, at anything, but especially hostage swaps. Our ‘negotiators’ are always an embarrassment to us!” he said in a Truth Social post on Thursday.

Gershkovich was among 24 people freed in an exchange of prisoners held in seven countries — Russia and Belarus on one side, and the United States, Germany, Slovenia, Poland and Norway on the other. On the Russian side, 16 prisoners were released, including one who had been imprisoned in Belarus. German and American citizens and Russian dissidents were among the group, the majority of whom were flown to Germany. Russia received eight people in return, including assassin Vadim Krasikov, who had been imprisoned by Germany, and two hackers and an alleged smuggler with intelligence links held in the United States.

This post appeared first on washingtonpost.com

ATLANTA — Former president Donald Trump unleashed a fusillade of personal and sometimes false attacks against the popular governor of Georgia on Saturday night, reigniting an intraparty feud three months ahead of the presidential election in this battleground state.

At a rally where his advisers wanted him to sharply attack presumptive Democratic nominee Kamala Harris and focus on Democratic policies, Trump repeatedly veered off script to attack Republican Gov. Brian Kemp in personal and increasingly aggressive terms — and seemed fixated on the past.

Trump mocked him sarcastically and called him “Little Brian”; repeatedly called him “disloyal”; blamed Kemp for Trump being charged in Georgia by a prosecutor whom Kemp has criticized; suggested Kemp wanted Republicans to lose elections; and argued Georgia would have better crime and economic numbers if Kemp were no longer governor.

Even for Trump — who has resented Kemp since the governor refused to help him overturn the 2020 election results and disputed Trump’s false claims of fraud — the broadsides were particularly hostile. They were also delivered in a swing state where Kemp has won office twice by large margins, including a second gubernatorial term in 2022 with Trump opposing him and rallying against him. Trump lost the state by about 12,000 votes in 2020.

“He’s a bad guy, he’s a disloyal guy and he’s a very average governor,” Trump said near the end of his rally, one of about a dozen times he blasted Kemp.

Kemp responded on X, the social media site formerly known as Twitter, during the rally. He was not there in person, and a person close to the former governor said he was not invited to the rally.

“My focus is on winning this November and saving our country from Kamala Harris and the Democrats — not engaging in petty personal insults, attacking fellow Republicans, or dwelling on the past,” Kemp wrote. “You should do the same, Mr. President, and leave my family out of it.”

Kemp has repeatedly sought to temper tensions with Trump, but the two men have not spoken since the weeks after the 2020 election. When Trump attacked him in 2022 and held events for GOP challenger David Perdue — a former senator who lost to Kemp by more than 50 percentage points in that year’s primary — Kemp would generally not respond and say that it was a one-sided war.

Kemp’s team hoped for a détente after that election, noting Kemp has repeatedly avoided criticizing the former president and believing Trump would see Kemp’s large win as a reason to back off.

In recent weeks, Kemp annoyed Trump by saying he did not vote for Trump in this year’s GOP primary — even though Kemp said at the Republican National Convention that he will support the GOP ticket this fall.

One person close to Kemp, who like others spoke on the condition of anonymity to describe private conversations, said the governor had no idea what specifically prompted the attacks on Saturday night. The person said “the chances are about zero” that Kemp will appear with Trump this fall, even if Trump wanted him to do so. Kemp had weighed helping Trump this fall, if asked, and potentially even appearing with him at events.

Some Georgia political strategists have said Kemp has a far better ground game in the state than Trump does, and Trump could use Kemp’s help.

Bobby Saparow, the campaign manager for Kemp’s 2022 race, said the attacks were “ill-willed and ill-timed.” Saparow said the campaign infrastructure that Kemp built in Georgia was critical to winning the state; Kemp won by 7.5 points in 2022 over Democratic opponent Stacey Abrams.

“The bases are solidified. We’re fighting over a very small sliver of voters in the middle. That’s the reason Brian Kemp is the most important Republican to the general election in Georgia in November,” Saparow said.

One person familiar with Georgia politics said Republican elected officials were frustrated because they believe the remarks will hurt Trump and could cost him the state. “Republicans were lined up to give positive comments tonight, and now some of them are scared to,” the person said.

“Makes absolutely no sense at all,” a second person involved in Georgia politics said. “Unless Trump wants to lose the state.”

The person said Kemp still disagrees with the policies of Vice President Harris, who is the presumptive Democratic nominee.

In 2021, Republicans privately blamed Trump for costing the party control of the Senate by repeatedly raising false claims about the election in Georgia, including pressuring the secretary of state to “find votes.”

Trump has been in a foul mood, some advisers said, because of the momentum and media coverage of Harris’s last-minute presidential campaign, which launched after Biden decided to step aside following a stumbling June debate performance. Trump has privately complained about having to face Harris and has been dismayed by polling numbers that show her closing a gap that Biden faced.

His team has sought to unify the Republican Party, knowing they need moderate Republicans in states like Georgia and Arizona to vote for Trump. On Saturday night, he attacked other Republicans, such as former House speaker Paul D. Ryan (Wis.), who have refused to kiss the ring. He mocked Sen. Mitt Romney (Utah) for losing the presidential election in 2012. He attacked Brad Raffensperger, the Georgia secretary of state, who certified the 2020 elections.

Trump also explained how he decided whether to support or revile someone.

“I have a bad trait,” Trump said. “I only like people who like me.”

Several people close to the former president described the comments as unhelpful but said Trump was never going to forget or forgive when it came to Kemp.

The crowd, full of Trump loyalists who waited in the scorching heat for hours, did not seem to mind his attacks on their governor. But they represent the most avid Trump supporters, not the suburban Atlanta voters where Trump bled support from 2016 to 2020, partially costing him the presidential election.

Trump and Kemp first clashed in early 2020, when Kemp sought to open the state after the coronavirus hit but before the Trump administration believed it was safe. Trump was also angry that Kemp was not deferential enough to him in 2019 when he appointed Kelly Loeffler as senator for the state.

Trump also expected him to sign a bill in late 2020 that would have helped Trump investigate that year’s election. Kemp would not sign the bill, surprising the former president, he said at Saturday’s rally. Trump told the crowd a story of sending a young aide to pressure Kemp.

“I got him elected, give me a break. Of course he will,” Trump said. He said he asked Kemp again to sign it and Kemp would not.

Others in the state, he said, were more willing to go along with his false claims of a stolen election — naming several of the people and asking the crowd to applaud them.

“Kemp is very bad for the Republican Party,” he said.

Trump blamed Kemp for his being charged by Fulton County District Attorney Fani T. Willis (D) with conspiring to overturn the 2020 election while mocking her name and the romantic relationship she had with a special prosecutor that has delayed the case. Kemp could have shut down the investigation with a “phone call,” he said.

“Fani Willis is a good friend of your governor. I’m not a fan of your governor,” he said.

Kemp was interviewed by Willis and cooperated in the probe, but the two are not friends and Kemp has been critical of her at times, calling it a politically motivated investigation.

At one point, Trump read about violent crimes in Atlanta and blamed Kemp for the violence. Crime, while a problem in Atlanta, has dropped in recent years, statistics show.

“Atlanta is like a killing field” and Kemp should do something about it, he said to applause from the crowd.

He briefly attacked the governor’s wife, saying she promised they would be indebted to him for the endorsement he gave Kemp in 2018. Marty Kemp, the first lady, is a pivotal adviser to the governor politically but recently said she did not support Trump and would write her husband’s name in instead.

He later told stories about his role in getting Brian Kemp elected, which are exaggerated, according to those close to Kemp. “Disloyal guy,” he said.

Onstage, Trump told Perdue — who gave a loud speech that struck longtime Georgia observers as uncharacteristic of his rhetorical style — that recommending Trump endorse Kemp was one of his only mistakes.

“This was probably the only mistake of David’s life,” he said. He then added sarcastically: “Thanks, David, I appreciate it.”

This post appeared first on washingtonpost.com

The S&P 500 index ($SPX) is a capitalization-weighted stock index. Many lesser capitalization blue-chip stocks that compose these 500 companies have been performance laggards. Though smaller companies in the index, these corporations are among the bluest of the blue-chip stocks. These prestigious corporations have been overshadowed by the immense mega-capitalization companies that have received attention from institutional and individual investors. For the most part, these other and forgotten stocks have better valuations and dividend yields as they have been somewhat neglected by Wall Street.

The Invesco S&P 500 Equal Weight ETF (RSP) provides a perspective highlighting these smaller blue-chip stocks in the index. Does this equal-weighted index reveal a market story obscured by the mega-cap dominated S&P 500 index?

S&P 500 Equal Weight ETF (RSP), Point & Figure Chart Study

S&P 500 Equal Weighted ETF (RSP) PnF Chart Notes:

  • In 2022, an Accumulation Structure began to form.
  • Markup began in 2023 and still continues.
  • Three Horizontal PnF counts are estimated here.
  • Two partial counts confirm each other in the $186 price zone.
  • The entire width of the structure counts to $260.

NASDAQ 100 Index ($NDX) with Relative Strength to the S&P 500 Equal Weight ETF (RSP)

This daily chart of the NASDAQ 100 Index ($NDX) illustrates the start and end of the second-quarter rally. A final ThrowOver of the channel line clocks in just as the quarter is ending and the third quarter is beginning. A sudden and sharp reversal is evidence of the rotation away from this mega-cap dominated index and into the broad list of blue chip stocks in the S&P 500 Equal Weighted Index. The Relative Strength line reveals the shift.

Broad market rotations can destabilize markets as funds flow away from prior leadership toward new investment themes. Watch for emerging leadership from industry groups and stocks while markets are generally correcting. Point & Figure horizontal counts can help greatly with price projection estimates. However, we must remember that PnF cannot estimate the time needed to reach potential price objectives.

All the Best,

Bruce

@rdwyckoff

Prior Blog Notes: At the end of June, I published a NASDAQ 100 PnF chart study as it was reaching price objectives. The price of the objective range was 19,600 / 20,800. On July 10th the $NDX peaked at 20,690.97, just as the new quarter was beginning. (click here to view the chart study). 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. 

Wyckoff Resources:

Additional Wyckoff Resources (Click Here)

Wyckoff Market Discussion (Click Here)

The broad market and the group are big drivers for stock performance. Recently, the Nasdaq 100 ETF (QQQ) led the market lower with sizable declines over the last five weeks. Weakness in QQQ weighed on tech stocks and tech-related industry groups, such as semis, software and cybersecurity. The PerfChart below shows QQQ down 4.62% since July 1st, SPY down a fraction and the Russell 2000 ETF (IWM) up 7.67%.

QQQ is in the midst of a pullback within a long-term uptrend. Chartists looking for opportunities in tech stocks and tech-related groups should wait for an oversold condition in the Nasdaq 100, which we are doing at TrendInvestorPro. We can identify oversold conditions using price oscillators and breadth indicators. I prefer breadth indicators because they aggregate performance for the average stock within the index.

The chart below shows QQQ with the Nasdaq 100 %Above 50-day SMA indicator in the lower window. First and foremost, QQQ hit a new high in July and remains well above the rising 200-day SMA. Thus, the long-term trend is up. This means the current pullback is a correction within this bigger uptrend.

NDX %Above 20-day SMA is a breadth oscillator that becomes oversold with a move below 10% (green shading). This means more than 90% of Nasdaq 100 stocks are below their 20-day SMAs. This is an oversold extreme that can pave the way for a bounce or breakout. It is important to wait for some sort of upside catalyst because stocks can become oversold and remain oversold. The blue arrow-lines show when this indicator surges above 70% (after becoming oversold). This shows a big increase in upside participation and acts as a bullish signal.

NDX %Above 20-day SMA has yet to become oversold and this means the correction in QQQ and tech stocks could continue. We are monitoring Nasdaq 100 breadth using an indicator that aggregates signals in seven short-term breadth indicators. The last oversold reading was in mid April and it has yet to become oversold. Click here to learn more.

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And then ….. all of a sudden….. things are heating up. Lots of (downside) market action in the past week.

Let’s see what sector rotation and RRGs can tell us.

The RRG at the top is a daily RRG, as recent price action has significantly impacted near-term rotations.

The main takeaway is the concentrated risk-off rotation, with Technology and Consumer Discretionary rotating into the lagging quadrant. To offset the nose-dives in these two sectors, many others came floating to the surface on a relative basis.

Utes Lead, Tech Lags

Looking at the price performance over the last five days (snapshot Friday, 8/2, 1:30 pm ET), we see the defensive sectors rising to the top of the table, while the more offensive sectors are found at the bottom. Investors are flocking to the safe havens of Utilities, Consumer Staples, and Healthcare. The odd ones are Real Estate and Communication services (META is certainly helping here).

The real damage for the cap-weighted S&P 500 comes from Consumer Discretionary and Technology.

Equal Weight Sectors Paint a More Realistic Picture

The RRG showing the equivalent equal-weight sectors paints a pretty clear picture. Three sectors are shooting deeper into the lagging quadrant: Consumer Discretionary, Energy, and Technology. Utilities and Healthcare are making the opposite move into leading. The remaining sectors are mixed around the 100 level on the JdK RS-Momentum scale.

This paints a more realistic picture at the sector level, which is less impacted by mega-cap stocks, but it confirms the rotation we also see in the cap-weighted sectors. RISK OFF.

Is the BIG ROTATION Over?

For a few weeks, it was all about the “BIG ROTATION,” the move from large caps into small caps.

I discussed this two weeks ago in this video for StockChartsTV and asked whether that market segment would be big and strong enough to prevent the S&P 500 from falling.

At that time, the rotation was clearly visible, and SPY was holding up above support near 550, so there was no massive “outflow” of money from the S&P 500.

When the market moves lower, by definition, money is flowing out of it. When the market moves higher, new money is put into stocks. When (sector) rotation takes place while the market remains stable, the money is moved around between sectors.

At first, investors pulled their money from mega-cap and large-cap stocks and moved it to other sectors and segments (small caps). But now, money is actually leaving the market.

Interestingly, more money leaving the market seems to come from the small-cap segment.

Large and Small Both Go Down, but At a Different Pace

The RRG shows the ratios between cap-weighted large-cap sectors and cap-weighted small-cap sectors. It uses $ONE as the benchmark to visualize the movement between large- and small-cap sectors.

All tails are on the left-hand side of the graph, indicating that these ratios are in downtrends, meaning large caps are underperforming small caps. But the improvement over the last five days is rapidly becoming visible. All these tails are curling back up, indicating that the downtrends (meaning a preference for small caps over large caps) are starting to level off and improving.

The chart above shows this ratio for XLK:PSCT in combination with an RSI(9). The sharp move lower from the 4.979 peak has come to rest near the developing support line around the levels of the previous lows while the RSI is executing a positive divergence.

Pretty much all of these ratios are showing similar charts.

Hence, on a relative basis, large-cap stocks seem to be making a comeback, but only because they are dropping less fast than the small-caps.

In reality, small-cap technology stocks are dropping like a stone.

And so are large-cap technology stocks, only a little less.

When you are a long-only investor with a capital preservation benchmark, don’t be fooled by RRG tails that are turning upward or rotating into the leading quadrant.

Where it all comes together.

This chart was snapped Friday, 8/2, at 2:30 p.m. ET. The bounce from wherever it will come is very likely to give us more clues about the near future. I would not be surprised to see some “Wham Bam, Thank You, Ma’am” short covering, taking the market a little up from its lows.

What happens from there will be our guide going into next week.

The area between 533 and 537.50 will likely start to serve as overhead resistance, while the way down is now open to the 517.50-520 area.

#StayAlert and have a great weekend. –Julius

The dog days of summer are here. And the stock market gives us a brutal reminder of this.

The first trading day of August began on a very pessimistic note. Thursday’s weak manufacturing data spooked the stock market. All broad stock market indexes, including the S&P 600 Small-Cap Index ($SML) and the S&P 400 Mid-Cap Index ($MID), fell sharply after the Purchasing Managers’ Index (PMI) from the Institute of Supply Management (ISM) came in at 46.8 (below 50 indicates contraction). 

Friday was even worse after the July jobs report data was well below expectations. The broader indexes continued their slide with the charts of the broader equity indexes ending the week with technical breakdowns. But in the recent past, hasn’t the stock market rejoiced when a softer jobs number was released?

It’s Different This Time

Thursday’s quick shift from green to red shows how this market can shift on a dime. On Wednesday, investors were optimistic about a rate cut in September after hearing Fed Chairman Powell’s comments after the FOMC meeting. Maybe those comments were fresh in everyone’s minds because the following day, investor sentiment shifted drastically. 

After the PMI data came out, concern grew that perhaps the Fed’s decision to leave interest rates unchanged in the July meeting may not have been a smart decision. A September rate cut may be too late.

Friday’s weaker-than-expected employment report didn’t help. It magnified the fear and accelerated the selloff in equities. If you dig deeper into the report, it’s enough to create some fear. If the labor force participation rate is rising, as is evident in the July NFP, but there aren’t enough jobs to hire the additional job seekers, unemployment will rise. 

The fear has now shifted from a soft landing to a possible recession. That the Fed hasn’t cut interest rates yet is maybe enough reason for investors to wrap up for the rest of the summer months and reset in September. 

Two bad reports like the ones we just got tend to set off red flags. Stocks got slammed across the board—large caps, mid-caps, small caps, tech stocks, and industrials—all underwent significant drops. Another shift can be seen in the CME FedWatch Tool. Since the July NFP report, there’s a 73.5% chance of a 50 basis-points rate cut in September. 

Sentiment Shift 

So, how bad was the technical damage? The weekly chart of the S&P 500 ($SPX) shows it tested its 20-week simple moving average (SMA) support and closed slightly above it. So, from a longer-term perspective, the damage isn’t as deteriorating as your portfolio or daily chart may suggest. 

CHART 1. WEEKLY CHART OF S&P 500 INDEX. The index tested its 20-week moving average. Will it hold? That’s something to watch next week. Chart source: StockCharts.com. For educational purposes.

The daily chart tells another story. If there were one word to describe the action in the daily chart below, it would be “wipeout.” Well, maybe it’s not that bad.

CHART 2. DAILY CHART OF THE S&P 500 INDEX. The index has broken below the trendline from the October lows but is now at its 100-day simple moving average support. Chart source: StockCharts.com. For educational purposes.

The S&P 500 has broken below its upward trendline from the October lows and is now testing its 100-day SMA support. The market breadth indicators in the lower panels aren’t showing too much weakening, but it’s something to watch for. 

If the S&P 500 continues its downward move into next week, it could challenge the April lows before returning to firm ground. That would be about a 13% decline in value, which could be a healthy correction. That can be painful to deal with in an overextended market. 

The Nasdaq Composite ($COMPQ) was hit even harder than the S&P 500. In the Nasdaq’s weekly chart, you can see the index is at the support of its 25-week SMA and also hit the support of its March 18 high.

CHART 3. WEEKLY CHART OF NASDAQ COMPOSITE. Keep an eye on some key support levels. Chart source: StockCharts.com. For educational purposes.

The daily chart below suggests that the index is likely to reach its April lows—almost a 20% move from the high. If tech company earnings follow the trend of either weak guidance or lower-than-expected earnings reports, the Nasdaq could take a deeper dive.

CHART 4. NASDAQ COMPOSITE ALMOST AT A 61.8% FIBONACCI RETRACEMENT. The tech selloff could continue, so keep an eye on the next support levels. Chart source: StockCharts.com. For educational purposes.

Bonds Step Up

If investors are pulling money out of stocks, where is the money going? Could it be bonds? Maybe. Bonds were one of the bright spots on Thursday. The weekly chart of the iShares 20+ Year Treasury Bond ETF (TLT) below shows that bonds broke out on strong momentum on Friday. If you’re sitting on some cash, it may be time to allocate a portion of your portfolio to bonds.

CHART 5. WEEKLY CHART OF TLT. Bond prices have broken out to the upside. This could be the time to pay attention to bonds. Chart source: StockCharts.com. For educational purposes.

As the stock market indexes dropped, the Cboe Volatility Index ($VIX) spiked. On Friday, the VIX almost hit 30 but closed below the high. Talk about a panic rise!

Closing Position

Overall, August started badly. This is a difficult market for long-term investors. Should you wait it out or sell your long equity positions and park some of your cash in bonds? It’s best not to focus on all the noise and stop worrying about the day-to-day moves. But you should still monitor important support and resistance levels.

Another point to remember is that we’re amid a seasonally weak period, which tends to be more pronounced during an election year. Let’s hope we’ll get out of this in September without too much damage and perhaps a 50 basis point rate cut.

End-of-Week Wrap-Up

  • S&P 500 closed down 2.06% for the week, at 5346.56, Dow Jones Industrial Average up 2.10% for the week at 39,737.26; Nasdaq Composite closed down 3.35% for the week at 16776.16
  • $VIX up 42.71% for the week closing at 23.39
  • Best performing sector for the week: Utilities
  • Worst performing sector for the week: Technology
  • Top 5 Large Cap SCTR stocks: Carvana Co. (CVNA); Insmed Inc. (INSM); MicroStrategy, Inc. (MSTR); Alnylam Pharmaceuticals, Inc. (ALNY); Ryan Specialty Group Holdings, Inc. (RYAN).

On the Radar Next Week

  • July ISM Services PMI
  • August 30-Year Mortgage Rates
  • June Consumer Credit Change
  • July Manufacturing PMI
  • Fed speeches from Daly and Barkin
  • Earnings from Lucid Group (LCID), Caterpillar Inc. (CAT), Gilead Sciences (GILD), Robinhood Markets, Inc. (HOOD), Palantir Technologies, Inc. (PLTR), and many more.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Famine has officially been declared in at least one refugee camp sheltering hundreds of thousands of people in the Darfur region of Sudan, food security organizations announced, a stark warning of the cost being paid by the population after 15 months of civil war.

Famine has been ongoing in the Zanzam camp near the city of El Fasher since June, according to the United Nations-backed Famine Review Committee (FRC). The camp’s population has swollen to around half a million people since the onset of the current conflict.

Official declarations of famine are exceedingly rare. The FRC’s conclusion is only its third since the monitoring system was set up 20 years ago, and its first in more than 7 years. Declarations are often issued as a clarion call to unlock more money from the international community to prevent further deaths.

Although the finding is limited to the Zanzam camp, the report warned that “many other areas throughout Sudan remain at risk of famine as long as the conflict and limited humanitarian access continue.”

El Fasher, the capital of Sudan’s North Darfur state, has for months been besieged by the Rapid Support Forces (RSF), a rebel group that took up arms against the Sudanese Armed Forces (SAF) in April 2023. The conflict has laid waste to much of the country’s capital, Khartoum, and has since swept across other regions.

The war has transformed Sudan into what the UN has called “one of the worst humanitarian disasters in recent memory.” More than 10 million people are internally displaced in the country, with more than 25 million people facing acute hunger.

Although Thursday’s report mark the first official declaration of famine, the World Food Programme (WFP) warned in May that people in Darfur had been forced to eat grass and peanut shells as the region was wracked by hunger.

The Integrated Food Security Phase Classification (IPC), which the FRC reports to, defines famine as “an extreme deprivation of food,” likely leading to starvation, death, destitution and extremely acute levels of malnutrition. A famine is declared if two adults or four children for every 10,000 people die each day due to outright starvation, or a combination of malnutrition and disease.

The last time the FRC declared a famine was in 2017, when 80,000 people in South Sudan faced famine conditions in parts of Unity State after three years of civil war. The only other declaration came in 2011, when nearly half a million people in Somalia experienced famine due to conflict, droughts and poor rain.

In Sudan, once considered a regional breadbasket, the FRC stressed that the main driver of the famine was not weather, but “conflict and lack of humanitarian access, both of which can immediately be rectified with the necessary political will.”

Another monitoring group, FEWS NET, the UN-backed Famine Early Warning Systems Network, also issued a famine declaration Thursday. Although this was also limited to the Zanzam camp, it warned famine could spread across the rest of El Fasher, which is home to an additional estimated 800,000 people.

Both groups warned the famine at Zanzam is likely to last at least until October and potentially much longer. To prevent this, the FRC urged the warring parties to “ensure the full delivery of services to mitigate the likelihood and severity of famine.”

“As the conflict is the predominant factor driving this famine, all means to reduce or resolve the underlying conflict between the parties involved in Sudan should be exhaustively explored,” it said.

This post appeared first on cnn.com

The children of two Russian intelligence agents, who were among the detainees released as part of a historic prisoner swap, only discovered their nationality when they were being flown to Moscow, the Kremlin said Friday.

Their parents, Artem Dultsev and Anna Dultseva, were among 24 prisoners swapped as part of a complex, multi-country deal that saw high-profile American detainees and Russian dissidents freed in return.

The pair had been posing as an Argentine couple in Slovenia where they were convicted of spying. Their two children flew back with them on Thursday from Turkey.

The boy and girl “found out that they were Russian only when the plane took off from Ankara,” Kremlin spokesman Dmitry Peskov told journalists.

Russian President Vladimir Putin greeted them on the tarmac in Spanish as they didn’t speak Russian and didn’t even know who Putin was, according to Peskov.

“When the children came down the plane’s steps – they don’t speak Russian – and Putin greeted them in Spanish, he said ‘Buenas noches,’” Peskov said. “They asked their parents yesterday who it was that was meeting them, they didn’t even know who Putin was.”

After coming down the plane’s stairs, Dultseva, holding her tears, hugged Putin, who was standing on the red carpet rolled on the tarmac holding bouquets of flowers. Putin kissed Dultseva on the cheek and shoulder, and gave her and her daughter bouquets.

Putin briefly hugged Dultsev too and then the rest of the released Russians, before the group walked together on the red carpet away from the plane.

Thursday’s massive swap was the result of years of complicated behind-the-scenes negotiations involving the US, Russia, Belarus and Germany, ultimately leading Berlin to agree to Moscow’s key demand – releasing convicted Russian assassin Vadim Krasikov.

A total of eight people, including Krasikov, were swapped back to Russia in exchange for the release of 16 people who were held in Russian detention, including former US Marine Paul Whelan, Wall Street Journal reporter Evan Gershkovich and two other Americans.

Dultsev and Dultseva pleaded guilty to espionage in a court in Ljubljana on Wednesday and were sentenced to serve time in prison.

While living undercover in Slovenia, Dultsev posed as an IT businessman named Ludvig Gisch. After pleading guilty, he was sentenced to more than a year and a half in prison, which the court said was equivalent to time spent. He was set to be deported to Russia and was banned from entering Slovenia for five years.

Dultseva posed as an art dealer and gallery owner and went by the name Maria Rosa Mayer Munos. She was also set to be deported.

During the call with journalists, Peskov also revealed some additional details of prisoner exchange negotiations between Russia and the United States, saying that they were primarily conducted through the FSB and the CIA.

When asked about other Russians detained abroad, Peskov said that “the fate of all our Russians who are held in custody abroad, in the United States, is a matter of constant concern for all our relevant agencies, which will continue the relevant work.”

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The pounding of sustained gunfire and artillery had rattled Khin Swe’s home in northeastern Myanmar for days, with shelling getting ever closer until it was impossible for her to remain.

“There was nothing we could do to be safe, except to run,” said the 28-year-old online sales rep.

Like many of the residents of Lashio, a major town of about 170,000 people nestled in the mountains of northern Shan state, Khin Swe packed what she could and fled.

Images published by local media in the past few weeks show a mass exodus from the town, with a long line of cars, trucks and bikes laden with belongings snaking through muddy, monsoon-lashed roads.

Since late June, a powerful ethnic rebel army and its allied resistance forces have mounted a renewed offensive to capture Lashio. The strategic garrison town, the largest in Shan state, is the seat of the junta’s regional Northeastern Military Command and the center of its power base in Myanmar’s northeast and areas near the Chinese border, with about 40 battalions under its command.

Myanmar has spiraled into a devastating civil conflict since the junta’s 2021 coup was overwhelmingly spurned by the people, as the military wages a ruthless war against a nationwide armed resistance determined to oust it from power.

On July 25, the Myanmar National Democratic Alliance Army (MNDAA), a rebel force of the ethnic Chinese Kokang minority, announced it had “won a decisive victory” against the junta and declared Lashio “fully liberated” following a 23-day operation.

If confirmed, the capture of Lashio would be the biggest victory for the resistance since the coup and mark a turning point in the three-year civil war that has been characterized by increasingly brutal attacks against civilians by junta soldiers and warplanes, and the mass displacement of more than 3 million people.

Junta spokesperson Maj. Gen. Zaw Min Tun has repeatedly denied that the town and the regional command has been captured, calling the claims “propaganda.” The junta said the rebel group has “devastated civilians’ areas [rather] than military strategic holds.”

Video and images posted to social media and on the MDNAA’s accounts in recent days appeared to show their troops in central Lashio, including at the railway station, prison and a broadcast station, and within hundreds of meters of core military infrastructure.

Analysts say the situation remains fluid and while the rebel group is quickly moving through the town, capturing several battalions especially to the south of the city, fighting is ongoing.

“That sort of position in the very middle of Lashio certainly points toward significant gains within the city,” said Nathan Ruser, an analyst at the Australian Strategic Policy Institute, who has been mapping positions of the resistance in Lashio.

For Lashio to fall, “it basically eliminates the junta as an effective organized force from a huge part of the country,” Ruser said. “And for it to appear to be happening after only about a month of clashes shows how much the capabilities of the junta have declined in the last year especially.”

Caught in the crossfire

Khin Swe said Lashio’s residents were used to the sounds of fighting nearby but not within the city itself.

“Artillery shelling was fired constantly at night over the town. With our phones in our hands to keep updated with the news, we all sat anxiously. Some nights, I didn’t dare to sleep as shells roared overhead. At some point I fell asleep and was woken up by the sound of the loud artillery again,” she said. “It was the scariest moment I have ever experienced in my life.”

Khin Swe, whose home was close to the base, described how shelling started near her part of town but had grown in intensity in other areas as the military’s soldiers exchanged fire with the rebels.

She escaped to Myanmar’s second-biggest city Mandalay, a six-hour drive away in normal conditions. Bus fares leaving the city had skyrocketed, she said, as droves of people tried to flee.

Some of her family members decided to stay in Lashio to protect their homes and businesses. Before phone lines got cut off, Khin Swe said her relatives “saw Kokang troops move into the town and position themselves in empty buildings, while they urged the people to leave.”

“I am sure my home has been wrecked, but we can’t reach out to people who are left in the town because the phone connection is cut off,” she said. “My friend who had stayed in the town until very recently told me that most of the houses have been damaged.”

Being among many people displaced by war in Mandalay, Khin Swe said she and her family “are barely surviving.”

“The displacement shelters are full up with the entire population of Lashio town, some of us are struggling to find a place to live. Besides, we don’t have food to eat either,” she said. “Our family could not take some valuable items other than some money, and now we are living with more than 30 people in a place we rented.”

Other Lashio residents caught in the crossfire have written desperate messages for help on local community and neighborhood Facebook groups.

“There are children and elderly being caught in a high school amid crossfire in Lashio, they have not eaten the whole day, I don’t know how to help,” one social media user posted.

“We are a group of three girls with a 70-year-old grandma, we want to leave the town either for Taunggyi or Mandalay, but we are struggling with how,” another resident posted, leaving her phone number.

The fighting, which has extended across Shan state and the neighboring Mandalay region has forced thousands of civilians to flee – many of them multiple times – often to towns and villages also facing a barrage of junta airstrikes and shelling.

The deteriorating humanitarian crisis is being exacerbated by a lack of food and aid, with local community networks risking their lives to reach those in need.

Coordination of anti-coup resistance

Rebels have reportedly seized dozens of junta bases and several northern towns since a renewed offensive in late June by the Three Brotherhood Alliance, a trio of ethnic armed groups fighting alongside the People’s Defence Force (PDF), the armed wing of the national unity government in exile.

The gains for the rebel alliance – made up of the MNDAA, the Ta’ang National Liberation Army (TNLA) and the Arakan Army – followed the collapse of a Chinese-brokered ceasefire, according to local media and resistance groups.

Last week, the TNLA said it had captured another strategic town in the Mandalay region – Mogok, the center of Myanmar’s lucrative gem mining industry.

Analysts say resistance forces now control many of the roads to Lashio and other key towns in the northeast, preventing the military from resupplying soldiers in its peripheral outposts.

“They’re unable to push forces up because all the roads are controlled by the opposition, so they have a hard time sending reinforcements,” said Miemie Winn Byrd, a retired US Army Lt. Col. and professor at the Daniel K. Inouye Asia-Pacific Center for Security Studies.

Since October, the military has been weakened by a series of territorial losses, troop defections, desertions and loss of manpower. Endemic corruption and poor command within its ranks mean the junta leadership may not have a clear idea of the situation on the ground across the country, including in Lashio, analysts say.

“Because of the corruption, Naypyidaw does not know how many forces it has… they have had a lot of desertions and defections that are going unreported,” Byrd said. “I’m not sure (junta chief) Min Aung Hlaing knows that that city has fallen into the hands of the opposition. I’m not sure his people are telling him that.”

In a recent address, junta spokesperson Zaw Min Tun appeared to counter claims of a weakened military, which he referred to by its local name, the Tatmadaw.

“As long as Myanmar exists, the Tatmadaw will exist. As long as we exist, Myanmar will live even stronger because we will safeguard your lives and your properties. Therefore, you all must work hand in hand to defend your country,” he said.

The anti-coup resistance in Myanmar was once considered a loose grouping of ill-equipped fighters, but recent successes, including the MNDAA’s push into Lashio, has shown a new level of coordination and capability, according to analysts.

“This phase of Operation 1027 has really shown a new level of interoperability and coordination between the ethnic resistance organizations and the political PDF resistance,” said Ruser, referring to the Three Brotherhood Alliance’s name for its ongoing offensive.

“Given the sort of snowballing gains by the resistance, and especially the Three Brotherhood Alliance over the last six to eight months, they’re now a really equipped force. They have artillery, they have plenty of drones, they have all sorts of capabilities that now allow them to really strike apart at qualified and static positions.”

For Khin Swe, the fighting in Lashio has left people divided.

“Chinese people in the town and young people who are in support of revolution are largely in favor of the Kokang group while the older generation, who don’t want war, blame the Kokang for their territorial invasion [and] are in support of the military,” she said.

Khin Swe said she is “saddened to see the destruction” in her hometown but she supports the “revolutionary groups defeating the junta.”

“I am happy and sad at the same time because I don’t know how we will rebuild our home. But the news of Lashio being captured gives us hope that one day in the near future we can go back home,” she said.

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