Tuesday, June 18, 2019

Headline of the Day

You may have noticed this morning's big rally in stocks! 

We can definitely credit the President with the Lion's share of this one. 

We were already looking at a 150-point rally in the Dow (on Mario Draghi's dovish commentary), but the following tweet explains the additional 250:
"Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting."
Well, if you're thinking short-term (I like the long-term prospects embedded in this morning's tweet), and looking for a big market pop this week, DANG (or maybe DANG)! I might've titled this one "The Potentially Untimely Headline of the Day"; as the President maybe shoulda held that tweet till after the Fed announcement tomorrow. 

You see, the market's begging for (and Trump's demanding) a promise to cut rates this year, and when you add this morning's better than expected housing numbers to a massive rally in stocks -- while the bulls may still get what they long for tomorrow -- it certainly doesn't strike fear (inspire caution) in the hearts of the voting members of the Federal Open Market Committee... 

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