Important Part of Cycle…

Number one, keep in mind that Trump measures his success by what the Dow is doing, even his Attorney General knows this.

So now one can put things together. First, the mid-terms are only 8 months away and any kind of market cycle will take at least 6 months to get it on. Secondly Trump absolutely believes in Market Manipulation, and not to forget all the people that voted vote for de-regulation and lower rates, plus tariff’s are still waiting for things to happen. And lastly some areas that Trump investors have gotten trapped, things like crypto, software, and private equity are really wanting a savior. Can you see the picture?

Which brings us to this week, market Guru’s on CNBC are talking about being defensive while at the same time they really want to be on offense. In reality the time to have been on defense was a month ago. Now we see by looking at the charts, a couple we showed two days ago, that while one cannot call a bottom, these charts are in bottoming areas. For sure you don’t want to be a seller this week.

Bottomline, watch things carefully, no knows what to buy, the market will tell you. I know it will be difficult to put on a happy face with all the hatred, violence, and lies coming out of the State of the Union.

I think it is probable that this will be the last rally of the Trump Administration. Don’t screw it up.

We will talk about economics in the coming days.

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