What we are going through right now is likely a late stage bull
What we are going through right now is likely late stage bull. We’ve had two corrections for real since the bottom in 2009. The VIX hit a new low last week. Last week the market had another small event with the health care bill. At some point, the constant drip, drip, drip of irritating news is going to have a cumulative effect. Fear drops like a rock but hope dies hard. Tops are very complex and slow to form.
Today, as we speak is yet another round of inquiries as the President’s son, Jared Kushner and Manafort go behind closed doors to testify. In the very least, the crowd is getting a case of “Russian fatigue” even if the elite DC crowd is not. None of this is good for the growth agenda the market is looking for.
For a Monday morning, the market is off to another slow start and on the bounce, you see they haven’t even covered the gap, not a good sign. Finally, euro/U.S. dollar (EUR/USD) currency pair has reached 144 days off its low back in December. I’ve been calling for it to get back to Charlie Hebdo levels which is the level it was at when the first serious round of stimulus was enacted by the ECB as a result of that attack back in January 2015. We are there right now which suggests two full years of stimulus activity in Europe has gone down the drain with no improvement to their economy. The CAC took notice, dropping down to April 21st levels which gives back whatever enthusiasm was generated by the Macron candidacy and ultimate victory. Let that sink in.
Finally, if you are curious about my new vibrational work to learn how I nailed this high perfectly in oil in the chart below I’m giving a free webinar on Wednesday afternoon.