QUICK OVERVIEW

• The whole world is on edge “again” so global stocks had a miserable start to the year – the worst ever.

• China’s stock market lost almost 10% for the week, causing trading to be suspended twice.

• Fears of a wider Sunni-Shia conflict are increasing

• North Korea keeps rattling nukes, and South Korea put its military on alert

• America’s economy added 292,000 jobs in December, better than expected.

• Inflation in the Eurozone is unchanged at 0.2%. Forecasters had expected a rise.

• Sweden, also battling low inflation, has a benchmark interest rate of -0.35%.

• Car manufacturers in the US had the best year “ever” – selling 17.47 million vehicles.

• Iron Ore prices continue depressed

• APX spot electricity rates are at a 15 year low

• Rubber continues to sink

• Total U.S. Rail carloads are down 20.3 %

• YoY Coal Rail carloads are down 35.3% YoY

• The Libor - Fed Funds Spread is beginning to look interesting “again”.

• Our opinion of Dow Theory is currently bearish. IT will return to a bullish stance if the Dow Industrials close above 17919 “and” the Dow Transports close above 8292.

• Dow Divided by CPI pulling back to breakout point.

• The CPI adjusted S&P hasn’t made new highs “yet”..

• When vied from this angle (lt DJ log) things look quite benign “so far”- especially if one includes dividends..

• The next short term S&P Cycle low should show up around Jan. 22 - perhaps!

• The S&P Vix Ratio is in green territory - perchance it’ll get a bit greener?

• Gold Bugs: buy XAU versus Gold?

• % of world markets with 5 week average above 20 week average
• % of world markets with 6 month average above 24 month average

• ( WSJ) 40% of millennials have used a pawnshop or payday lender.

• Brazil's inflation rate soaring to 10.7% a 13-year high

• U.S. home values gained $1.1 trillion; renters paid record $535 billion in 2015 T .