Greetings. It is Monday morning here in Hong Kong where I got a bout of food poisoning past couple of days. Let’s just say…no fun. Feeling much better this morning after sleeping 12 hours straight. Have a few thoughts this morning on things I am seeing.
Japan announces they will add even more stimulus. More? The latest and not making this up…just handing out money in the way of vouchers. Money you can save. Vouchers would have to be spent. So government goes more into debt so others can spend. Sure…that will work in the end.
Trump vs Cruz? WTF! Wrestlemania is this coming Sunday. How about a good old fashioned Texas Bullrope match made popular by the man I used to watch every Wednesday at Miami Beach Convention Center back in the 70s…the American Dream Dusty Rhodes! Frankly, I am not sure what we are watching when it comes to Republican presidential politics. It looks like Trump will win the nomination but who knows what they try to pull at the convention. And I guess…TRUMP IS TRUMP!
The Belgium attacks: What do you expect? It really seems governments only put the hammer down AFTER something happens. We say prayers and wish them well. We pray that leaders figure out there is only one way to stop vicious animals.
We have also received many emails asking us to comment on President Obama’s reaction…dancing the Tango, going to baseball games and all that crap. All of the emails were livid that the President would not stop his schedule and were doubly livid about the optics of dancing. We won’t quibble but have to ask…is anyone surprised? There are no “Katrina” moments for this President. You remember “Katrina!” The media (on purpose) turned it into a moment to use against Bush for the rest of his whole presidency. They would never do that with Obama. They may complain for a day…but it is immediately dropped. Thus, this President can and does do what he wants. This President would not even go to France when attacks occurred there even though just about every other head of state was there. The president’s answer to all this is that he will not let terrorism stop his schedule. We will let you decide.
After my 12 hours of sleep, found out the Communist beat the crook handily in a few states but that doesn’t matter…does it? The crook will be the nominee. Nevertheless, Trump versus the crook will be huuuuge for ratings! And don’t ask me why I call her “the crook!” If you have to ask, you have not done your homework!
As far as markets, one little audible from us. Last Wednesday, we thought that day was going to mark a decent top. Thursday’s early action was less than thrilling. But Thursday’s pre-holiday close was darn good. The most important areas right now are commodities and industrial-types. It is these areas that are leading the market. They reversed up. As long as they continue to hold, market should be ok. On top of that, this week is end of quarter. End of quarter and end of month window dressing is illegal so it does not happen. (BAZINGA!) Otherwise, we are still into the meat of resistance with a massive amount of stimulus being produced to directly keep markets from dropping. Earnings just around the corner.
As far as the oft-mentioned Gold, still think we have a near-term high put in off of the distribution we told you about at the highs.
Enjoy your week. Heading to Shanghai tomorrow.