Short-Term Iffy But Long-Term Remains Strong
Following up from Friday’s post, stocks remain overbought and certainly stretched to the upside although the same can certainly be said all month. They are much in need of a break or at least a quick pause to refresh. However, sometimes strong momentum overpowers everything as we have seen from time to time. I closed last week by saying that the bull market is absolutely not over in my opinion. That prevented the usual emails. Look no further than two […]
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Date: February 21, 2017
Trump Top Ticking Stock Market?
As I write the next issue of Street$marts, there is a lot of Donald Trump included. Not so much from a political standpoint, but more how he is impacting the stock market and economy. It’s really been amazing that every single meeting I have with clients and prospects, the Trump question is the first one asked. As you know, when it comes to investing, I have a strong contrarian side to me. As the late Joe Granville once said, “if […]
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Date: February 17, 2017
Sector Leadership Immunizes Stock Market from Bear Market
On Friday, I wrote about the Russell 2000 and what a potential breakout could mean for the stock market. At the open today, this index hit a fresh all-time high. Before breaking out the balloons and party streamers, let’s see if it can close at new highs and not give back too much over the coming days. With the Dow closing above 20,000 for five straight days I will have a new target very shortly that looks to be several […]
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Date: February 13, 2017
Small Caps Getting Ready to Lead While Worries about Trump Persist
Yesterday, I wrote about the major stock market indices and how the Russell 2000 was finally waking up. Below is an old chart which I first offered in early January. You can see that the small caps have been in a tight trading range all year and are now trying to break out to the upside. With so many studies pointing lower, this is one index which could counter some of the negativity and give the market a little push […]
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Date: February 10, 2017
Bears Still Struggling to Make Progress
Happy snow day to those of you in the northeast! For several weeks, there have been all kinds of studies which indicate that the risk/reward for stocks is skewed to the downside over the coming weeks and few months. The same can be said of some daily studies. When I say skewed, I mean favors a typical and normal pullback of 2-5%. Yet each time the bulls look tired, they somehow prevent the bears from making any progress. In the […]
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Date: February 9, 2017
BONUS Surprise: Inner Circle Shakeup
Bonus #2 – Inner circle shakeup Given how Donald Trump’s campaign went and how much turnover there was at the top, that theme continues straight to the 2018 mid-term election. At least 3 cabinet members will be replaced by then and another one or two from the rest of the inner circle. Some will be asked to leave while others will become frustrated with either the president or acrimony in Congress. Steve Bannon, Kellyanne Conway, Sean Spicer, Wilbur Ross, Steve […]
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Date: February 8, 2017
BONUS Surprise. Janet Yellen Reappointed Fed Chair
#9 – Janet Yellen reappointed Fed Chair Donald Trump attacked and criticized the Fed and Chair Janet Yellen during the campaign. He blamed her and them for many of our economic woes along with the stock market being on the edge of a cliff about to plummet. Once 20,000 was hit, Trump changed his tune dramatically, exclaiming how great it was to achieve that milestone with more upside ahead. As Yellen’s term as chair expires at the end of 2018, […]
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Date: February 7, 2017
Donald Trump is a One Term President But…
1 – Donald Trump is not on the ticket against the Democrats’ candidate in 2020 I find it very hard to believe that Donald Trump will want to run again in 2020. While 74 is by no means old, he will have literally done it all by that time. I think there is a binary path to his party’s nomination in 2020. First, things go so well that Trump opts to leave on top, securing his legacy with the country […]
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Date: February 6, 2017
Bulls Win Big on Friday But Still Not Ready
Very nice day for the bulls on Friday as the monthly jobs report was really the Goldilocks scenario. Not too strong and not too weak. The U.S. saw decent growth with some mild revisions lower but almost no wage inflation which caused expectations for a March rate hike by the Fed to decline to roughly 20%. I would not hang my hat on the Fed staying put in March. There are many data points between now and then and I […]
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Date: February 6, 2017
Trump and Putin Have a Falling Out
2 – Trump and Putin have a falling out This is probably the least surprising of all on the list. One of my theories is that Trump has been so pro-Putin because Obama and Hillary Clinton were such adversaries of Russia. It was yet another good way to differentiate during the campaign. The U.S. and Russia’s interests are so inversely aligned that it would be almost impossible for the two countries not to have a falling out by 2020. I […]
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Date: February 6, 2017
