As clearly observable since no later than early last week, directional trend moves were lapsing into consolidation phases. And with those come a degree of consternation. While it might seem that the less directional trends might leave a more subdued psychology, the memory of the more aggressive trends leave many market participants on edge. That is often due to the degree to which there is concern over not missing the next major price move in spite of the current lower volatility.

As noted in all of our recent analysis, the fundamental backdrop was just not consistent with any orderly push higher in U.S. interest rates triggering a sharp reversal of the U.S. equities' major bull trend. Of course, that still meant after the U.S. 10-year T-note yield swung above its 2.62% four-year high back on Jan. 19 (incidentally the same day as our Showdown at Govvies Graveyard post) the higher interest rates might disrupt the U.S. equities’ runaway upside (parabolic rally) psychology.

We began last week by wishing everyone the obligatory Happy New Year. And as it turned out, it has already been very happy for the U.S. equities bulls. This is also true for their international counterparts, even if politically challenged Germany is lagging a bit.

But is it Mr. Claus or someone else? This year is a bit different in the context of just how upbeat the equities outlook has become.

It was very interesting to see Republicans succeed in passing the House version of their tax reform plan on Thursday, even if that still leaves quite a bit of uncertainty due to the more than a bit different Senate plan that was unveiled a week earlier.

More extensive developments on the Republican tax reform plan are likely to provide a view on whether they have any chance of success.

Mark this man’s words. That’s because he is U.S. Representative Kevin Brady, one of the members of the current ‘Big Six’ Trump administration and Congress members working on the Trump administration’s major tax reform effort.

Rohr International’s active analysis of how short-term activity fits in with the intermediate-and long-term trend indications is another MODERN TRADER advantage.

No, not the sustained collaboration Troika between the European Commission (EC), European Central Bank (ECB) and the International Monetary Fund (IMF) that is overseeing the Greek Debt Bailout. While we feel the Greek Debt Bailout situation is still festering in the background on the IMF actually only funding its commitment once the European creditor nations agree much more extensive Greek debt relief, that is not the ‘troika’ of the moment.

There is nothing like the thought of your friendly neighborhood unstable dictator happily cheering along his newly confirmed intercontinental ballistic missiles (ICBMs) and miniaturized nuclear weapons to give the markets pause. And of course, we say ‘neighborhood’ in the sense that media genius Marshall McLuhan noted back in the 1960’s that the new high-speed video communications had turned the entire planet into a ‘global village’.