Futures down a wee bit after a strong day yesterday.
It is 715 am here in Brussels, Belgium. Happy voting day today.
Our prediction is that the Reps keep the senate but the Dems take the house with the Dems doing better in the house than expected. We think Trump and the Reps missed a tremendous opportunity in past weeks highlighting the economy but instead decided to go immigration. We think Trump should have gone on a “nice” tour instead of continuing on his “fake news” and all that crap tour. We talked about the national media fake news before Trump was even political Trump…but there are times to slow the roll.
O course, we can be wrong…and hope we are. These Dems are left of left, void of any “people” ideas. Instead it is all about what government will do for you…but this government is nothing more than an out of control, debt and deficit blob. Trillions have been inefficiently and ineffectively spent, taken out of the hands of tax payers in the name of poverty and the poor. Instead, maybe 25 cents on the dollar goes to work. How do we still have poverty with so many trillions spent?
Anyway, no matter what, the sun will come out the next day. The people are still bigger than any damage the government can do (we think) and if Dems win, they will just F up the next 2 years…ensuring Trump wins in 2020. They are that bad. They will spend two years on impeachment and investigation after investigation because they have no other ammo. The masses will get pissed and then 2020 comes along.
All Monday, we were saying the DOW had better keep rallying because again, growth was hit. You see the final numbers. We do not think the DOW leading and NASDAQ lagging is a good thing. Heading to Vienna now. Will report back to you tomorrow.
-The markets rallied off of some of the most stretched, extended and oversold conditions we have seen in a long but:--Every major index except the DOW, almost every sector and most countries still trade UNDER the LONGER-TERM 200 DAY MOVING AVERAGE.--Leadership remains almost nil with mostly defensive names showing the best relative strength. CONSUMER STAPLES (not all), a few UTILITY names, some DISCOUNT RETAIL and not much else.--As we scan past leaders in growth, many trade in between the 50 and 200 day with wedging moves back towards the 50 day. There are others that are much worse. They broke below everything.--The SOX, even with this week’s rally remains way below the 200 day with nary a name in shape. The FINANCALS also.-=Friday’s market reversed to the downside until the prez inserted another timely “announcement” on China. The market rallied into the close but in no way changed the big picture…that A low, probably a decent low for now has been put in place but we are doubtful of how far this rally can go…and for all we know, Friday’s high may be it. If that is the case, one cannot be thrilled. The weeklies look better as markets could have had a gigantic defense week…but too early to tell._-And now onto the election. We are quite tired of all the bs. We approve this message.-