We could have low volume all week

July 2, 2018 09:56 AM

Nobody knows how angry social mood will get but there comes a point where it will spill into financial markets. That was proven in February when the FISA memo finally was released. Talking about FISA memos, did you see the Congressional testimony last week? The House passed a resolution for Rosenstein to hand over the documents they’ve requested by the end of this week or they can file contempt charges or even move for impeachment.

I’ve mentioned this countless times. This sort of thing doesn’t hit the market the day of the testimony. It is a cumulative event. One of these days the bucket overflows and the Dow could be down 400 when some action becomes imminent. Anyone who disputes that, check out markets charts from the early 70s. The Watergate scandal eventually caused the stock market to become a poisoned well and the same thing could happen this year.

For right now, risk is high and the calculations are starting to lean in favor of the bears. The period from now to the end of next week could be Custer’s last stand as far as the bulls are concerned.

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About the Author

Jeff Greenblatt is the author of Breakthrough Strategies For Predicting Any Market, editor of the Fibonacci Forecaster, director of Lucas Wave International, LLC. and a private trader for the past eight years.