Goal line stand digs in!

Follow me on twitter @GaryKaltbaum

First off, isn’t it thrilling to watch a President who claims we are practicing austerity while under his administration, another $7 trillion of debt has been created and now proposes a $4 trillion spending bill? Keep in mind, Clinton’s last budget was $1.8 trillion. Last I looked, we have not more than doubled the population to get to this point of $4 trillion. Almost speechless on this!

We wrote to you yesterday about the markets needing a goal line stand as they dropped down to what we called important support. Yesterday was a great case in point about the market defending itself at these important junctures as the market opened poorly and finished with a flurry to the upside. We don’t rationalize why. We only care about what happened. Continue to use yesterdays lows as your important support levels. Markets are now simply back into a nauseating trading range.

As far as our thoughts on oil and that last Friday’s action was a low for now, nothing has changed. Oil prices got a little more momentum yesterday leading into higher prices again this morning. Keep in mind, a rally was waaaaaay overdue and not sure yet we have seen a final low but one has to think $114 down to $44 could have been it.

Lastly, please make note of some of the main European markets now leading up as the ECB printing machine ratchets up. Remember, markets have loved printed money since the lows. There will definitely come a day where that is not the case but that day does not look like it is here yet.