Big Kicks from the Cheerleader
The Administration’s cheerleader, Steve Mnuchin, did his best late last week with the chant “High Growth and No Inflation”. The energy of the Cheerleader feels like it does when a close game is almost out of time. This is continuing as the market on Friday pressed up against the 62 percent maximum bounce level. In overnight trading we see the market trading above that bounce level.
Technically, a close up here signals a retest of the highs. I will wait to see how this day plays out, but I am not a believer yet. The fact that the dollar is weakening, gold is rising, and T-Bonds are rising, point to a real question mark on the validity of this rally.
The Politics of the country is changing deeply, things are happening for the people at a level not seen before. As I keep saying, millennials, the bottom 30 % and women are going to flip this whole scene in 2020. The popularity of “Black Panther” movie, gun control initiatives, and # metoo, are just a few of the signals.
Current Political Risk is rising too as the Mueller Probe gets closer to Trump and we all know what he is about, so following the money is where the probe is going. Go back to our May 18, 2017 blog, the story and Risk has not changed from then.