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!

SOURCE: http://www.cnsnews.com/news/article/terence-p-jeffrey/monthly-federal-spending-tops-400b-first-time

PRE MARKET

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.

Next week, EARNINGS IN DROVES:

Monday: BLK, NFLX

Tuesday: BAC, SCHW, CMA, GS, JNJ, LMT, AMTD, UNH, CSX, IBM

Wednesday:ASML, NTRS, USB, AXP, CHRW, CP, QCOM, UAL

Thursday: ALK, BX, BK, DHR, DPZ, DNKN, MS, NUE, SAP, TRV, UNP, AMD, COF, ETFC, EBAY, ISRG, MXIM, MSFT, PYPL, SWKS, V, WHR

Friday: AAL, GE, SLB, HON, STI

And that is just for starters.

 

THE CLOSE AND PRE MARKET

Nice little swing yesterday off of Trump Jr news but after all was said and done, the selling was bought up. So far, the support levels we outlined for you in the past few days are holding. NASDAQ 6100 and the NDQ 5600. Also, the all-important SEMIS (SOX) held at 1020 breakout level. Though volume has been low, price  is on the move from those support levels.

Futures up nicely this morning, especially on the NDX as Europe strong. Europe has been correcting but like most, the corrections have been shallow and short-lived.

Growth is starting to reassert again as the NASDAQ back above the 50 day with the NDX opening above the 50 day today. Just keep in mind, trade is now getting wide and loose and that’s after a good move up. That does not mean things do not go higher. In fact, starting to see a few new highs.

Major indices continue to show very little ability to correct in a meaningful fashion. The latest drop was stymied right at support for growth areas. Sellers just cannot penetrate lines of defense. We now move to earning’s reports and the reaction off of earnings.  Most major indices remain constructive. When the NASDAQ/NDX and SOX were hit, the DOW and S&P didn’t budge.

We now add that we are seeing better action in a few commodity names. No leadership but feels like lows are being put in.

AIRLINES, HOUSING, CHINA ADRs showing up on our screens continuously…though they are very low beta. As stated, also again seeing favorite growth names starting to reassert.

Lastly, Yellen says some stuff today and tomorrow. Don’t worry…everything is just great. Markets say so.

 

The Socialists still don’t get it!

What’s to stop people from leaving? Keep it up Seattle! It’s never enough for these bureaucratic boobs!

SOURCE: http://www.seattletimes.com/seattle-news/politics/seattle-council-to-vote-today-on-income-tax-on-the-wealthy/

PRE MARKET

Yesterday, beta day with big-cap leading way. AMAZON (AMZN) back above the 50 day as it is Amazon Prime day. Yippee…

Also, good day for many Chinese ADR’s moving off the 50 day like TAL, JD, EDU and others.

Other notes:

SNAP now below IPO price and hit harder this morning. As we stated on the date of the IPO, you get to pick your poison on whether you want in on an IPO foisted upon Wall Street at an absolutely assinine, assiten, asseleven price. You see the outcome. On top of this, it is being reported that the business has been heading south.

We wanted to make note of Commodity names. We have been bearish on just about every name in the space for a lon while. We are not so bearish any more. For sure, clear lack of leadership but a few names perking up. CENX the real strong name. RIO putting in a big base. And a lagging name like FCX looks like it may want to put in some sort of bottom. Again, not great leadership here…but thought it worthy of pointing out. We think the dollar continuing to weaken has something to do with this.

HOUSING had another good day yesterday but today, faces the dreaded downgrade. Interested in seeing whether it gets shrugged off.