Trump Whiplash

I am not talking about Stormy Daniels.

I am talking about a President who uses the bully pulpit to stimulate the stock market for 18 months and then uses the same pulpit to teach the world a lesson on trade.

It would seem to me that it would have been better to do the tariffs first ( I agree that China has abused the world on trade and currency policy) and then use tax policy to pull the economy out of the hole.

Now we see a situation where there will not be earnings on which to reduce taxes.

Trading Today

The market is treading water as it awaits supposed strong earnings, remember these will be Peak Earnings for those thinking ahead.  Larry Kudlow is being trotted out to make everything OK, that could work for a few days.

The 200 day average is still the thing to watch, at the open it is at 2597 and the 3 day average is at 2624, so in order for a violation of the 200 day to occur it would take around a 75 point drop in the S&P 500.  So with volatility in the cards, who knows as this week unfolds.