As we write this, DOW futures are up over 200 off of the Senate bill. It is quite interesting to read that the average effective corporate tax rate is already at 22%. So why would a small drop be such a good thing for markets? Of course, futures can change overnight.
Friday was influenced by a jackass report from ABC. In seconds, markets fell through the floor but when all was said and done, a 350 point Dow drop turned into a 40 point drop. We never like calling for anyone’s firing unless they are politicians or my favorite sport’s team coach…but this Ross guy is a professional at trying to rip one side of the aisle. After the Colorado theater tragedy, he had no problem linking the murderer to the Tea Party without doing any legwork. We certainly hope he gets his act together as he has done some great reporting in the past.
At this point, we just want to report the news.
Last week, the DOW was up 673 points…about 2.5%. The S&P was up about 1.5%. But to go along with our “changing of the guard” thoughts, both the TRANSPORTS and FINANCIALS were up over 5% but the SOX was down 5%. On top of that, the NASDAQ and NDX were both down. We also make note that a bunch of CHINESE growth ADRs have rolled over as well as some growth names here in the US.
We also needed to mention the ugly patterns in both the GERMAN DAX and the LONDON FTSE. We suspect the FTSE has some BREXIT issues but not sure on the DAX. The good news is we are into December where bad patterns can turn up but as of this second, something to watch.
CHINA is on a normal pullback but the rigged JAPAN market is just sitting after a big move up.
Lastly, as we have said recently, watch the OILS. Looks like they are trying to turn up off of strengthening oil prices.
Before more comment, we want to see what happens tomorrow and whether we get a “sell the news!”
Lastly, memo to the Trump administration! Please please please please yell and scream because the tweets are now going to put the President in harm’s way. For some unknown reason, he thinks he is playing some sort of game but we have news for him…the other side is not playing games. Tweet about markets. Tweet about football. Tweet about media. Tweet about anything your heart’s desire. Just stop tweeting about an investigation that potentially has you or others in your administration in the cross hairs.