Last week was a feeding frenzy for the bears. The Trump White House did a fine job of providing the bears with ideal feeding conditions with new and more outrageous controversies daily. The result was another week in which key indexes were pushed into further declines right into the end of the week, and right to the edge of key support. In the end, all news considered, the bears got their fair share of individual
Global equity markets had a hiccup last week, precipitated by President Trump’s (aka the Twitterer in Chief) tweets, threatening both North Korea and Venezuela, saying the US military is “locked and loaded” and ready to attack if provoked. Those tweets stopped what was looking like a market melt up dead in its tracks, and unlike other tweet storms that ended being buy opportunities, accelerated to a nasty selloff- leaving the market vulnerable to further declines.
US equities markets continue to churn, treading over swamp-infested waters, as the unemployment numbers improved again (4.3%) by dropping to the lowest levels since 2001, showing that a recession is not imminent (big positive). Speaking of the swamp: on Capitol Hill, Trump had another rough week as he was forced to sign the Russian Sanctions bill; while at the FBI, Mueller just hired a small army of investigators to take a gander into Trump’s finances.
Markets endured the chaos emanating from the White House, as Press Secretary Sean Spicer resigned and Trump threw Attorney General Jeff Sessions under the bus as the investigations by the FBI intensified. It was disclosed this week that Sessions, while under oath, was less than forthright about disclosing his conversations with the Russian ambassador to the US during the elections. Adding to the mix, Trump is exploring the option of a self-pardon, along with pardons
Equity markets roared this week, led by NASDQ 100 (QQQ). The tech-laden index regained its footing, closing over 3 % for the week, (its highest close since Goldman put out its hit job on semiconductors on June 9). The only big swoon last week occurred after Trump Jr. released e-mails related to the Russian election hacking, but the smart players used it for a buy opportunity. In fact, despite the strange tweetstorms emanating from the
Despite the meager outcome from the G 20 meeting with some calling it a G19 as the US retreats from the world stage, US equities shrugged off the global disappointment. Stocks stabilized, ignoring the larger than normal riots usually accompanied by such gatherings. Semiconductors and the Transportation sectors led on Friday. Just before the talks ended, France’s new leader, Macron stated, “Our world has never been so divided. Centrifugal forces have never been so powerful.
Due to my travel schedule this week's Market Outlook will only contain the video.
This week, tech and biotech stocks led the market. The Healthcare sector roared with the prospect of higher profits, should Obamacare be shelved. IBB, the biotech ETF rallied 9.57%. There are so many concurrent, self-reinforcing bubbles, it’s hard to choose a favorite. The first, the flood of money from central banks and bond market, is telling us two things: The Fed will not raise again soon, nor reduce its balance sheet. Good enough reasons for
The rotation out of tech and into big cap Dow /Industrial value stocks continued as the NASDQ 100 (QQQ) closed - 1.8 % for the week and those boring Dow stocks(DIA) closed positive +.4%. Sector rotation out of tech and semiconductors continued while the flight to safer plays such as utilities (XLU)and the undervalued Industrials sector (XLI) remained strong. Last week we highlighted that value stocks have underperformed tech for the last 15 years and