Time for Reflection as the Signal Triggers

In a sense we are seeing the Trump Chickens come home to roost. The tax cuts, the debt, the tariffs, the manipulation of paper assets, everything that he has done has been designed for headlines, not baselines. Sad to say but without working on the base, the mountain has nothing to work with.

Macro Signal Unfolding

The trigger and signal lines are crossing today. See chart below as of 11:15 AM CDT, S&P @ 3350.

As we pointed out in our July 28th post, in the short run we expect the period of mid September to mid-October as a period of maximum risk for paper assets. At a minimum we would expect to see the following levels, 2900 on the S&P and 9100 on the Nasdaq 100 during this period.

In a Larger Sense…

We see a Big top here, probably 2 to 3 years in duration as the manipulation is wrung out of Wall Street and a new base is built for main street. At the moment the markets are transfixed on what is really side issues, FANG like stuff.

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