THE MARKETS

As you know, we do not rationalize price. We do not rationalize constant tweeting that everything is wonderful when it is not. We do not rationalize “China wants a deal” uttered every day. We do not rationalize massive easing by central banks. We do not rationalize recession predictions and even some depression predictions. We do not rationalize $17 trillion of negative yields and what that may be saying. We just care about price because for us…IT’S NOT THE NEWS, IT’S HOW THINGS REACT TO THE NEWS.

Very simply, vital support held…and now we get 3 nice gaps to the upside in a row off of all that stuff we just mentioned.

Just keep in mind that before you get all bullish on a move up like you would get bearish on an 800 point down day:

The DOW is where it was Jan 2018.

The S&P is a tad higher than where it was March of 2018.

The NASDAQ/NDX is where it was a year ago.

The TRANSPORTS are where they were  Oct 2017.

The RUSSELL 2000 is where it was Oct 2017.

The FINANCIALS are where they were Oct 2017.

The REGIONAL BANKS are where they were Nov of 2016…that’s 2016.

Many areas are worse. Foreign markets are worse. This includes the past 3 days move to the upside off of the again, “calming” of trade tensions.

The good news is longer term support has held. But everything remains below highs and in what is becoming long ranges. Hopefully, some start moving out. Others have no chance as they are way down in their ranges…with some downright bearish.