They have created over $20 trillion of debt.

They have created yearly deficits between $500 billion-$1 trillion.

They have created a welfare state with over 80 programs doling out over $1 trillion/year.

They have slowed down the potential of economic growth.

They have grown Medicaid from a program to help the indigent to covering over 70 million people.

They have created so much debt that we pay over $400 billion/year just to pay interest. Repeat…$400 billion down the toilet every year because of the debt THEY created.

They created a healthcare bill that made no economic sense and had no chance of longevity and on video, admitted to lying about it.

They have used the central bank to keep rates at 0% for 8 years in order to ———– fill in blank. That same 0% ripped savers (middle class) off and handed all that money to financial companies.

They have created an election system based solely on how much money is raised. (after professing money is bad for elections)

They have ramped up taxes, mandates, fees, fines, regulations, directives and overall control of American’s lives.

They have ALLOWED immigration to run amok to the point where many protect illegal criminals. Yes…protect illegals that commit illegal acts.

They continue to expand government to numbers unfathomable. Taxes continue to go higher. Government spending continues to never go down. Government never ends. This year…$4.1 trillion of spending. In 3 years, it will be over $5 trillion. This is up from under $1.8 trillion the last year of Clinton.

Because of all this, they have lost the White House, they have lost the senate, they have lost the house, they have lost governorships, they have lost state houses. They have lost everything. They are supposed to have no power…YET THEY KEEP WINNING.


They keep winning because they have perfected the “tax cuts for the rich” mantra even though some good people just want to roll back tax hikes.

They keep winning because the national media is a bunch of lying on their back, paws in the air, tongues wagging, lapdogs.

They keep winning even though they said Obamacare was magnificent, will lower premiums and deductibles and will cause the Knicks to win the NBA Championship.

They keep winning even though they have been completely wrong.

They keep winning because they keep giving away and scream when someone says you are giving away too much.

They keep winning because “the other side” is just “them light!” The other side couldn’t even get their act together after 7 years of whining and complaining about a failing healthcare bill.

They just keep winning because no one has the grapefruits to do anything about this…and we keep losing as one day this debt-laden, deficit laden, central bank laden nonsense will eventually bite back. And they will keep winning because they will just blame others and the media will stand right with them. They keep winning and we keep losing.


Futures flat. A few beta names tick up. Very strong recent names BABA, AAOI, NVDA continue. Keep in mind, earnings soon for many. AAOI just raised numbers. Careful about extended names.

BLK down $14. Financial leader misses. XPO down a couple…been a leader.

Disaster of an IPO APRN down to $6.80…down 32% from IPO price as Amazon may be getting into delivering packaged food. What will Amazon not get into?



On June 9th, we told you “beta” had topped for now. A week ago Friday, we thought a low for “beta” was being put in. BUT that was one hell of a low. Instead of bouncing back up, SEMIS/TECH/INTERNET and all that stuff pulled a “U”!

During the time “beta” was being hit, we alerted you that other areas were not budging. The DOW, S&P, NYSE just sat tight. Now that “beta”
is getting the bid again, those other areas simply broke out.

Just about all the areas we have been bearish on…remain bearish…notwithstanding commodities, with a few names turning the corner. Commodities work better with a weak dollar. And for a change, the dollar is very weak.

Other than that, we find little to complain about entering earnings season. Notice the poor reactions to some financials on Friday but all reversed up a decent amount of the downside.

JUST KEEP IN MIND, things will change during earnings season. A keen market player needs to sit back and pay attention to the reactions. Remember, it’s not the news, it’s how things react to the news. Expect some wicked moves both up and down.

Other thoughts:

EEM, FXI, IEMG and other foreign stuff are all breaking out to new highs. The best markets are the ones where good action can be seen worldwide.

We keep being asked about if the Trump agenda does not get through.  We think it matters but only to a certain extent. We say this because trillions are still being printed on a yearly basis by central banks. On top of that, many still have negative rates…yes, negative rates. If there is anything we have learned as we look back, never fight the fed…and these “feds” have taken monetary easing to place that even the softest of doves would have never believed.  Of course, we will always pay attention to price first but since QE1,  you know what has happened.

Jamie Dimon just said this…and our reaction!

Jaime Dimon:

“Since the Great Recession which is now eight years old we’ve been growing at 1.5 to 2% despite the stupidity and political gridlock. Because the American business sector is powerful and strong and is going to grow regardless of they went to feed their kids and want to buy home they want to do things the same as American businesses what I’m saying is it would be much stronger growth had we made intelligent decisions and that gridlock, and thank you for pointing it out because I’m going to be a broken record until this gets done, we are unable to build bridges, unable to build airports, not graduating.

I was just in France, in Argentina, Israel, Ireland we met with the Prime Minister of India and China it’s amazing to me that every single one of those countries understands that practical policies to promote business growth is good for the average citizens of those countries for jobs and wages and somehow this great American free enterprise system we no longer get it.

My view is corporate taxation is critical to that by the way regarding capital brings overseas, which is why the $2 trillion overseas benefiting all these other countries don’t like that, so if we don’t get our act together we can still grow. It’s just unfortunate but it’s hurting us, it’s hurting the body politic, it’s hurting the average American that we don’t have these right policies. So no in spite of gridlock we will grow at 1 ½ or 2%.

I don’t buy the argument that we’re relegated to this forever. We are not this administration can make breakthroughs in taxes and infrastructure ready for reform we have become one of the most bureaucratic, confusing, litigious societies on the planet.

It’s almost an embarrassment being an American citizen traveling around the world and listening to the stupid s— we have to deal with in this country, and at one point we all have to get our act together or we won’t do what we’re supposed to [do] for the average Americans and unfortunately people write about this saying like it’s for corporations. It’s not for corporations. Competitive taxes are important for business and business growth, which is important for jobs and wage growth. And honestly we should be ringing that alarm bell, every single one of you, every time we talk to a client.”

Our reaction:

Jaime…nice to hear from you. You’re worried about infrastructure? Funny…didn’t hear you say a word about President  Obama’s $800 billion stimulus that was supposed to go to “shovel ready” infrastructure projects. We know what got shoveled.

How about the past 8 years where approximately $9 trillion of new debt was foisted about an unwary American taxpayer? Didn’t hear much on that? Of course the media never reports on any of this done under President Obama. Where are you Jaime?

Funny…never heard you complain about a central bank that ripped the saver off by keeping rates at 0% for the 8 years. Oh…that’s right, you were the beneficiary of such a move.

$500 MILLION- $1 TRILLION deficits each year…ahem!

Federal spending over $4.1 trillion this year being sucked out of the economy. Haven’t heard a word. By the way, this is up from $1.7 trillion the last year of the Clinton presidency.

We can go on but we are just being repetitive. You want to know why we cannot grow faster. Look no further than all this evidence.  We have been talking about this and other nonsense for years. Haven’t and didn’t hear too much from you under the last President. Thanks for joining in the worrying of what 435+100+past White Houses+lobbyists+central banks have been doing to this country. But don’t worry, the market is up.


Here’s your biggest bull market! Government spending!

Never goes down and constantly breaks records!



S&P futures flat but NDX futures up decently…even though we do not see anything up of note on the NDX.

FINANCIALS started reporting today. WFC, JPM, C, JPM are all down pre-market. All have been acting better as of recent. Other financials down in sympathy.

Major indices continue to act fine. Out of the box recovery for the SOX/NASDAQ/NDX/TECH and all that crap as they have made a “U” in recent trading. One could say overbought near term but that has never stopped them from continuing.


Monday: BLK, NFLX




Friday: AAL, GE, SLB, HON, STI

And that is just for starters.