65% Of Reporting Companies Have Been Earnings Expectations

The following chart from Bespoke shows the percentage of companies beating earnings estimates broken down by quarter. So far this earnings season we have seen 65% of companies beat estimates for the fourth quarter of 2016. If this percentage holds until February 21st (end of earnings season) this will be the strongest estimates beat since the third quarter of 2010.

Foreign Governments Selling US Treasuries At Record Pace

A nice chart from Goldman Sachs shows foreign official institutional investors have been selling US treasuries at a record pace which has only accelerated in 2016. A significant portion of this selling pressure is coming from China. Recently Chinese FX reserves hit five year lows as China has liquidated reserves to keep their currency from depreciating.

China FX Reserves Break $3 Trillion Hit 5 Year Low

China’s FX reserves continued to decline in January although at the slowest pace in seven months. Reserves fell $12.3 billion breaking the $3 trillion level for the first time in five years. January outflows were dampened as the renminbi strengthened throughout the month.

80 Days Without A 1% Selloff

The streak of consecutive days without a 1% selloff continues reaching 80 days today. This streak is the longest since the financial crisis surpassing the 66 days reached back in 2014. The current run is a bit unusual but the market has seen such streaks before, see the following chart from Strategas:

Market Often Drops In February Under Presidents First Term

Interesting chart from Strategas Research Partners shows that the market generally struggles in February after a new president is elected, see below.