Although its been said before, weve got new old news, i guess that the Drug Companies and the opioid business are facing a criminal probe. All of which would have at one time virtually trashed this market. Instead, the dorn thing just wont quit. Dow gained 55 points. Nasdaq advanced. 18 with all three closing at record levels. So we have to ask ourselves, what the heck is going on here so you know what im going to do in honor of these records, im going to run down all the reasons why this rally keeps on trucking first, while, indeed, discounter dollar tree had problems with the tariffs, the big guys are doing just fine. Walmart, target, amazon, costco simply havent felt the pain. The tariffs air problem for some many chains but the sky is falling narrative hasnt played out. Inflation remains subdued. When you consider everybody was predicting the trade war would devastate all retail, things are going much better than expected. Number two, the enterprise is very soft, but far fewer comp
Given that i base almost all of my work on fundamental factors related to the companies i study and got the shape of their charts, the offthe chart statement is great for my methods. I noted through your feedback on twitter youre interested in the analyst. Its time to get a lot of people involved in the level set. As i explain in get rich carefully, where i devote a whole chapter to charting, have i become a chartest myself i still single out the highlights, and i overlay them on my broader world view at the moment charters can care less about this stuff i wonder if they can do their jobs with the Company Names blocked out in fact im sure they could some hate the fact for knowing anything at all about the company. Now ive become pretty proficient at charting over the years but i still have the individual work of technicians to demonstrate on charting thats why tonight im picking the best of the best charts of some of the best technicians we have worked with the point where im asston is
Hard selloff is this advance meaningless as the recent decline look, i want to say it had more substance given its magnitude, the dow gaining 196 points nasdaq vaulting 1. 36 . But we are in a totally erratic moment in a totally erratic month where i believe one day never seems to beget the next. But that doesnt mean we cant ponder why we went up to measure the meaning of this rally. I came up with 12 reasons why it happened, and some of these reasons have enough staying power to keep the advance alive. Lets start with copper. Thats right copper is breaking out to a threeyear high. This means something because its used to build things. It means weve got a stronger Global Economic growth spurt than people are talking about. A necessary ingredient for any sustained advance. Thats why the stock of free port has been the Market Leader. Largest Copper Company we have caterpillar is right behind them you need cat machine it is youre going to have a mineral rally. This move is also including
How did they get hit so hard when Nothing Happened . The absurdity can seem prepostero preposterous. Market wide sale off makes it seem its the best stupid and worst corrupt and drives you away from the asset class. I wish there was a hidden logic, but the truth is your inclinations are right and the action often is every bit as stupid as it appears. There is no way to think of it other than negatively. Tonight, i want to tell you about all the ways stocks can be impacted by forces that have nothing to do with the companies themselves. So you have some grounding, grounding about what might really be driving you crazy. The absurdity of your stocks going down when nothing happens at the underlying companies. So were going to pull apart all the reasons your stocks do go down through in fault of their own. That way youll have a more certain handle on how to take advantage of the big market wide declines because when you know what youre doing, you can make a decline work for you, not agains
That the democrats could take not one, but both houses of congress. And im starting to think thats a major reason why stocks arent acting as well as wed expect given that so far earnings season has been pretty darn strong. Even as the dow rallied 41 points today. It is far more muted than one would expect with big rallied intraday usually giving up to selloffs in the late afternoon. Sell, sell, sell. Now, maybe the debate tonight will change things but for the first time in ages, i think its important to frame the stock market in the context of a potential democratic landslide come election day. What would it mean for the democrats to win the house, to win the senate . What would it do to the stock market . White house, senate, house of representatives. Well, first, it would most certainly elevate the more radical wing of the Democratic Party that views big business as the enemy. Think Bernie Sanders. Think elizabeth warren. So where would they do the most damage . The government inter