Another day…no tax reform…no healthcare reform but:
Today…$1.7 billion will be added to our debt.
Today…$1.2 billion of taxpayer dollars will be spent just on interest payments on the debt.
But don’t worried. Markets say everything is fine.
Futures actually down a wee bit. Just in the near term, everything looks overbought since the July 7 low in beta. A few blow-ups but decent reactions on a bunch of stuff. Lots more earnings to come.
OILS…tried…good action to try and break downtrend on Wednesday but as of this second, tucking its head in like a frightened turtle.
CHIPOTLE…see Murphy’s law.
SEMIS- Wow…”U”-shaped move. Needs to settle down in here. MXIM and SWKS gapping down a bit this morning. May do the trick.
DAX- Watch German Dax…if there is any fly in ointment of indices around globe, it is this one.
All we keep hearing is about how earnings have been fabulous. We have news for you. They have been decent…not fabulous. And often, it is all factored in.
IBM…the numbers underneath the surface worse than reported numbers.
The KNICKS still suck.
IBM yonked again as sales down again. UAL and CSX also down.
Big story VRTX on drug news up $35…helping overall biotechs where the IBB looks perfect.
ASML nice gap. MS smaller gap.
The story is beta/tech/internet/China adrs/Semis are back and in a big way. The June 9th top lasted to July 7th and instead of bouncing up, it has ramped up.
And the Republicons cannot shoot straight.
Just remember what we have told you for years here…not being talked about is the continued trillions of dollars of printed money and the negative interest rates. That is what is doing the trick…and looks like will continue. Japan actually admits to buying up their stock ETFs.
And dont forget…earnings season is at hand.
NFLX nice gap to new highs on big increase in subscribers and higher guidance. Other movers to upside are LMT, JNJ, UNH.
Movers to the downside are HOG, GS, SCSS, ETH, ERIC.
Futures are flat.
On radio yesterday, we mentioned how tight recent action in ENERGY has been TO THE DOWNSIDE. We noted how energy etfs have created a very tight channel during this bear phase. We are watching to see if the channel can be broken to the upside. We are not predicting it. The fact is the next move can be down. We just know it is a very unloved, very under-owned group. When a technical set-up shows up, we sit in our seat and watch. When you have a chance, check out the weekly charts on OIH, XLE, XOP and see what we are seeing. Again, the next move can be down. We are just making you aware of a great channel to play off of if things change.
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.