In recent reports, we found it necessary to put language in our reports that go something like this: “but we don’t know what the next tweet will be!” After all, it now seems there is not a day that goes by where President Trump doesn’t mention something that potentially affects markets. After a calming down, after what looked to be another decent low at important support being put in, after thinking the next move was negotiations on a trade deal, we get the news he wants to add $100 billion in retaliation to the retaliation from China. But don’t worry…there is no trade war.
Futures were much worse initially, down 500 Dow points overnight. We just got a crappy jobs number but we think this number is just taking back some of last month’s number, which seemed too high. Nevertheless, we repeat:
The market put in another decent low in the past couple of days…AND RIGHT AT GARGANTUAN SUPPORT LEVELS. But we also repeat that we do not think markets can get too much upside just yet as too many areas and too many names (while bouncing) are still not in bullish shape. We actually do not mind some pulling back in here. Again, regardless of any news, we think the recent lows will hold for now but we are just back into the ping pong, back and forth nausea.
We did want to make note that ENERGY names are sticking their head above resistance in the past day. We are also seeing a few names that are actually in or near new yearly highs while the group is actually just coming off lows. Energy prices have been strong. We also wanted to mention the new high list is showing a bunch of specialty retail names. Go figure!
And we now sit back and wait for the next tweet!
5 replies
  1. Peter LaBarca says:

    Ever since the two huge down days in February the market seems like topping action. I learned from you Gary that tops take a while to form and corrections even take longer to play out. When the president was elected the DOW was at 17k, it went up to almost 27k. I think it’s going to trend water at some level for the year. Just think, the DOW could test 20k and still be up 20%. I have no idea if that will happen but just an interesting point. We are also heading into sell in May and walk away. I know alot of people are against the tariff war and talk but honestly, I think we need to protect our own interests and slowly disconnect ourselves from the red empire.

  2. Newbie Bob says:

    Trump blinked on spending bill and China was watching. Their response is to hurt folks who put Trump in office. With midterm elections coming up China may make things painful for everyone short term and wait Trump out. Once Trump is gone or becomes a lame duck. Once a lying do nothing swamp politician is back running the country down the toilet , China can go back to stealing us blind..

  3. anti semite says:

    Dunno, ……where do the kike bankers want the market to go ?

    Up ?
    Down ?

    The Kikes will be the folks who rig it..
    Yoda will hazard an educated guess.

    The market will hold range thru April, then maybe in May, we could get a hit down with the next interest rate hike.

    If the market drops too too far, the banks will open the money taps, and rig the market to go right back up,,,

    or they won’t.
    Yoda says, “market holds range till the next rate hike.”

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