Looking at fundamentals and valuation, I see little if anything to add to the 5/21 "Looking Ahead"
post (see immediately below). As I read, I note there is a new conventional market wisdom about
Trump : Namely, that his bark is much worse than his bite. May be. But please note that he has
yet to face a major economic or policy crisis. This guy is eminently capable of fucking up big
time, especially when one of his obsessions is seriously challenged. So if you are in the game,
best pay attention to what he is up to. Now, looking ahead, there could be an issue for the market
regarding the Congressional election this autumn. It would be normal for the GOP to lose seats
in the House and the Senate, although there are a number of Democrats up for re-election in
the Senate this year in conservative and borderline states, so the once popular idea of a "blue
wave" that could sweep the Democrats into control of capitol hill currently seems less assured.
In the meantime however, the market may experience some angst anyway, as a "blue wave"
would prompt strong, critical reviews of the current pro-business policies in place.
From a technical perspective, the market needs to clear short term resistance just below SPX 2800
some time fairly soon to convince traders that a new up leg is solidifying. SPX Daily
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!