Perfect Storm…

It seems we had the perfect storm to clean up some market exuberance. We tested the May 20th thrust up day and it held.

I think we see the second bubble-up wave coming next from this general area. Probably a little sloppiness first.

Monetary multipliers are now the drivers, declining gold/silver/bitcoin are important factors. 7870 on SPX should catch the next leg.

Friday’s decline was a combination of an exuberant valuation and economic concern over rising interest rates due to increased economic activity. In my opinion market manipulation outweighs economics. In the whole period since January 2025, there were only a few places to buy bargains, April 2025, and March 2026. The rest of the time the market has been overpriced, so one has to get over that problem to successfully ride the Manipulation Wave. Sure, it will end badly, but Trump still has a few years left.