Played out exactly like i predicted. We shook out the weak hands on day one, people gravitated to safer stocks on day two. Yesterday, day three we had the final rejudgurgitation of the techs. The dow gained 73 points, brand spanking new alltime high someone let the president know im saying its a high again the s p and nasdaq both gained of course, during that decline, what happened . What happened . These people, the bears, came out of the woodwork. Trying to explain why they were right to hate the market the whole time and why youre a loser if you continue to be in this market. Didnt they scare you . They had to frighten you and we had the old gray Hedge Fund Managers telling us how foolish we are to consider looking at stocks. Call for caution, and obituaries were, of course, f. A. N. G all i can say is, these bears are darn lucky that the a in fang stands for amazon, because if it stood for apple, their miserable lives would be made even worse after tonights magnificent quarter. The
S p declining 0. 08 and the nasdaq advancing 0. 02 , we had them all. We need to do an autopsy to make sure we have the right cause of both the advances and the selloffs. So lets examine the cross currents. You know ive been saying that there will be some days where some Republican Leaders try to slow the trump agenda. Take apart the tripod that this rally rests on, a speedy end to regulation, fast repatriation of foreign money and Corporate Tax reform. In the last 24 hours, the gop Alliance Trump needs to move fast on the tripod of reforms, the ones that have helped stocks immensely, is showing some signs of fracturing. First the heavy focus on repealing obamacare is shoving the tax reform out of the picture, scrapping the Affordable Care act could make the economy grow faster. Not denying that. But its not really part of the stock propulsion program. And, yes, i am being a little facetious, but this is mad money. Its never going to be mad politics. Second, the Senate Hearings today a
All right. Im tired of hearing about the koolaid as in cramers drinking the koolaid again. On a day like today where the dow gained 107 points, nasdaq cliemded 0. 64 , i got to tell you, i know what the koolaid looks like and what it takes like and this aint it. I actually covered the horrific event where the phrase drank the koolaid came from. Back in 1978 i was a reporter covering everyone who died violently in california for the late lamented harold examiner. I was assigned the actual jim joans case, the man who lured 900 of his followers to his death because they did drink the koolaid. That concoction was laced with cyani cyanide. This market i think its laced with some tried and true principles. But to get upended by the rhetoric is next in line for the peoples temple potion. What are some of the oldfashioned concrete methods that can call this poisonous tonic into question. Lets start with the transports. It its one of the old evidence theories when it comes to stock before you c
Expected to roll out a revised exec tifr order on immigration today. Well talk more about the economic impact. First up, stocks are looking to extend weekly winning streaks. The s p and nasdaq each up to six. The dow posting four straight weeks of gains since the bull market began about eight years ago today it has generated more than 21 trillion in new stock market wealth. In fact, today is the anniversary of the dows crisis low, 6,400 and change, of course the s p and haines bottom come in a couple of days. There were a lot of people believe the asset class tarnished back then and havent come back. There are a lot of people who believe that a return on a tenyear bond is acceptable. And there are very few people say, i got to put all my retirement money in the stock market because its actually hurts you. Its not like the old days where people feel that its a completely investable concept. So today, again, j. P. Morgan comes out, gives a bunch of reasons to stick with the reflation the
Buying into weakness. Given that we got a heck of a lot of dips going on in a market like this one, where the dow sank 29 points today, s p declined 0. 44 . Nasdaq lost 0. 92 , i think its going over who does have credibility and who doesnt. So that you can learn how to tell the difference and do some buying as we are now down eight straight days. Thats the longest losing streak since october of 2008. Thats staggering. Lets talk with someone whos got credibility in spades, rick clemmer. Hes the ceo of nxp semiconductor. Hes been a transformational executive. Nxp was long viewed as little more than a component supplier for apple. Last year he snapped up freescale, a maker of chips for autos and the internet of things for 11. 8 billion. Four private equity firms had led a leveraged buy, paying monstrosity and it felt the company was always a few steps away from deaths door. But to him it was a way to diversify the footprint away from the cell phone and towards autos and internet of thing