New Cloudy Areas and a Macro Cycle Sell Signal Confirmed

The Big Question for the Markets after the Midterms

1. Will a Democratic controlled House be a big spender or a deficit focused entity ?
2. Will this younger generation demand roll backs of the free give aways of the last two years in order to now focus on education, infrastructure, and health care ?

What the CNBC type hotshots think..

They are looking for government hot money which they think will roll into a hot stock market…

We am not so sure, we think this new group in the house is going to show discretion in a way that we have not seen in years.

And don’t forget the FED

WE believe that they are going to complete their normalizing goal, take the 2 year into the 3.35 – 3.50 window.

And that means we should see the 30 year rate go under the 2 year rate.

Macro Cycle Sell Signal

And on the technical side, the Macro Cycle K-Trade Sell Signal was confirmed for the S&P.  Any sale above Tuesday’s close of 2755.6 should be a big trade.  The average signal lasts around 18 months.