Weekend July 28, 2018
Could the collapse of confidence in the red hot social media FANG sector be telegraphing a warning? The economy is in great shape what with tax cuts and tariff cuts and let's get NAFTA behind us before the elections.
Energy Service
After the gap down this looks like a reversal from a very oversold condition. HAL is big world wide energy service.
Patterson PTEN is Texas based energy service, same idea.
Berkshire Hathaway BRKB
In all three cases the MAs need to come down to the lower level, converge, and then begin climbing, but this should be the time to start accumulating.
Small Caps Weakening
Small caps are weakening, the PMO has turned down in the lower panel. A move back to the MAs at 158 - 1600 seems reasonable.
August is the seasonally weakest month of the year so looks like that is where we are going.
Social Mood
Trump's press secretary is thrown out of the Red Hen Restaurant, ditto for the Homeland Security gal at another restaurant, and Maxine Waters wants all Dems to accost Republicans at every opportunity. Where is MLK's non violent theme? I suspect this just gets worse as the election approaches. Yet polls show Americans are not interested in Russia or Stormy Daniels.
After all the tweets and threats looks like Trump is trying to wrap up some wins before the election. This explains the about face with Junker this week, claiming 4.1% victory, and hurrying to wrap up NAFTA. Let's hoe so.
Trump had a great week with the return of Korean War Remains, a tentative agreement on EU tariffs, and the 4.1% growth rate. And the Dems just can't stand that. Regrettably rather then trot out a solution to something they remain focused on Stormy and Russia. We shall see how well that works out for them in November.
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