Caution Is Logical
I have been discussing the lack of a 1% move in the S&P 500 for a few weeks now. This streak finally ended Wednesday as it rose 1.37%. The next streak which is much more ominous is the 96-day streak without a 1% decline in the S&P 500. The idea of a 5% correction happening…
Markets On the Brink of the Expected Move
All of the major indexes popped to all time highs today on the heels of a positive tone from the new administration. Bonds sharply lower sent financials higher. The brokerage firms rebounded today after being hit hard yesterday on the news of an all out discount commission war. In tonight's video let's revisit the expected…
Market Anticipatory Optimism Continues...
I had President Trump’s February 28th speech to Congress circled on my calendar for a few weeks. Yesterday, I stated it was bullish for the market because of its positive tone. Unity was promoted. Unity in government means more bills will get passed. In the past, the market has been in favor of gridlock because…
What Trump’s Speech Might Mean For The Economy
Because it’s early in President Trump’s term, it’s tough to predict what will occur. His speech to Congress on Tuesday was normal in terms of historical precedent, which is unusual for his unorthodox style. The speech didn’t have that many specific economic policy proposals, but we did learn where he may be leaning on the…
Small Caps a Leading Indicator?
We're finally starting to see the typical market structure kick in on the daily chart, and as expected, traders are starting to hedge against the "unexpected" with tonight's SOTU speech...
Sentiment Soars, While Target Sours
The markets are focused on President Trump’s speech to Congress tonight at 9PM. I will be discussing what was mentioned in the speech in my next article. This article will review the latest information we’ve received about the health of the consumer. Target provided terrible guidance while the Conference Board showed the consumer is more…
Mixed Economic Reports
This stock market never quits. Even though there were concerns about President Trump’s major policy speech Tuesday, all four major indices rose. The Russell 2000 rose 0.96% and the Dow rose to a new record high for the 12th consecutive day which ties a record long streak. While equities were blissful, some investors must’ve been…
Complacency Prevails on the Eve of a Risk Event
If you missed today's trading day you didn't miss much. Indexes moved sideways on very light volume. A complacent market will move at some point. Could tomorrow's State of the Union address be that catalyst? Let's take a look...
Earnings Estimates For 2017 Fall
The stock market is at a standstill as it waits for the President’s speech where he addresses Congress Tuesday. Trump will be discussing the budget he will be submitting to Congress next month. We received a preview of the budget today as it was reported that defense spending will increase $54 billion or 10% from…
Tax & Healthcare Reform Looming
The returns stocks bring will be determined by the legislation passed in the next 12-18 months. Tax reform and healthcare reform are on the table, meaning many industries will be effected. In fact, almost every industry will be impacted as regulatory reform will help the financials, energy, and small cap stocks; the one-time repatriation tax…