Signals in Place

Now we are just waiting for the end of the month markups, Apple earnings, and the name of the new FED chairman on Thursday.  It is too bad that it doesn’t appear that Taylor will be named.  If Trump really wanted to drain the economic swamp, Taylor would be his choice.

Keep in mind that the good economic numbers of the past few months are built on manufacturing stuff that will allow feasting on the Trickle Down Tax Change plan (no reform, just putting in place a capture of gains for the top 10 %).  As we keep saying, this will only work if there are final buyers.

The fight in the marketplace will start on Friday, the Tax Plan will be out, the new FED chair will be named, the employment numbers will be good with a rebound from the hurricanes.  So all the power of the money class will try to breakout the dollar and the stock market to the upside, along with trying to push down the T-Bond and Gold markets which have been telling a different story.  With the MACRO Cycle turn triggered, lets see how all this short-term pressure acts over the next two weeks. Usually there is a hovering period before everything kicks into place.

Leave a Reply

Your email address will not be published. Required fields are marked *

two × 3 =