Thursday March 22, 2018
First be sure to read Dan Henninger's column in the WSJ today. He suggests that the Mueller investigation does need to be shut down but not for the reasons Trumps mentions.
As noted the investigation has all of Trump's detractors seething for his head. Former CIA Brennan suggests the Russians may 'have something on Trump.' This kind of comment would never have been uttered by other CIA Directors but as Dan notes now just another day at the office.
I have suggested that the DJIA could come back to 12,000 which is where th monthly 200 bar MA is now. Most notable about Dan's column was a comment by a reader along these lines.
Let Democrats take the House and Senate, Mueller continues his probe, impeachment proceedings begin, hello DJIA 12,000.
The reader is correct. With so many Republicans choosing not to run, and Democrats running Military candidates claiming they will not vote for Pelosi, and no one in the Republican Congress really FOR Trump, defeat in November is a real possibility.
Meanwhile stocks had a terrible day yesterday.
249,977 - 24,655 = 322 point range which closed to the downside by 44 points. On the two hour chart the index is falling below the 125 and 50 bar MA and falling below the uptrend line from the bottom of the February sell off.
As stocks fell, gold rose, as did oil prices.
If a commodity rally is getting underway this is what has to happen. Paper gold had a stellar day up 1.75% Sure it needs to take out the last high at 129 to turn the trend up. But this is a possibly a start in that direction.Gold needs a close over 1342 and silver 16.89.
Other Mining stocks and miner indexes also rallied in impressive fashion.
USO Two Hour
USO put in an impressive rally along with gold. I keep seeing articles pronouncing the death of inflation, that the FED will have a carefully crafted policy of metered rate increases to keep the economy on an even keel. Whistling through the graveyard of bear markets if you ask me.
Technology ETF
On the WSJ website,
The bloom is off the five stocks which have powered the NASD over 7,000. The operative phrase in the article about FB is 'should have gone further.' If called before Congress look for Boy Wonder to get the same treatment as WFC Stumpf received, anger. We have written numerous articles on the danger of Trump unleashing a trade war, see china sharpens swords.
All of this looks much like the landscape of early 1973. As Henninger notes, Nixon was finally left alone abandoned by his own Republicans. Trump edges closer to that precarious situation every day.
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