Hey everyone, I will apologize in advance for my rant in this week’s market soundbites but sometimes I just gotta! I hope all of you had a great Memorial Weekend Holiday! Now as we get our summer months underway we have a lot of balls in the air when it comes to the financial markets. From Geo-Political to Monetary Policies will be challenged and under review. June will be a pivotal month for many reasons but before I get to far in front of myself enjoy my weekly sound bites below
Weekly Sound Bites:
• Tariffs continue to rise and markets continue to fall…This will be the 6th straight weekly down close for the DOW and this new upcoming month several critical factors will play a role in near term price action; –first up is the June 10th deadline on the Mexican 5% tariffs and second is the upcoming meeting with Trump/Xi in Osaka, Japan on June 28th at the G20 meeting….we can expect markets to be very quick to react to headline news, rumors, and innuendo for the month…
• Treasuring Yields have plummeted to levels not seen since 2017 and with over $10 Trillion in Gov Debt holding negative interest rates the USD is becoming stronger each day and the US is a flight for international money flow…With Commodity prices dropping (Oil down over 20%) keeping inflation subdued more pressure is being felt to force the FEDs to cut rates by 25 bps to even 50 bps, regardless of the lower unemployment (around 3.6%) and strong economic data (slowing down but still robust)….and let’s not forget the Yield Curve has inverted (shorter term rates are higher than longer term rates) against a backdrop of higher Consumer Confidence has more or less, confused the FED officials….interesting times!
• We’ve even seen the news media (is it even news anymore or just ranting by crazy loons) tout China contemplating the ban on exporting rare earth materials to the US….forget this one as it is a non-issue, but to listen to the bastions in the press you’d think the world will end…keep in mind if the News Media could create an event that could end life here on this planet as we know it, they would do so; imagine the ratings! That is all they are good for!
• But as we all know, markets run on emotion and adrenaline short term, and this is the rocket fuel that makes Rat Brain Traders tick! But I say, put the frigg’n Cuckoo Back in the Clock and think more like a trader! There are great opportunities waiting for us traders that truly know how to exploit Rat Brain behavior and turn it into profits!
• For us here at our Trader User Group, we don’t really care where price action leads us; –we merely let price action dictate our next step, our next position strategy and how we play from conservative to aggressive! Our approach is a longer-term way to truly build wealth and for those following along, you know what we’re talking about.
• Sorry for the brief commercial, which I rarely, if ever do here, but sometimes I see what is peddled to the masses via some of these media outlets and I can only laugh! Anyway, the month of June will be key for us and how the summer months will unfold….we are currently about 7% off the all-time highs and given the fast market run-up we saw earlier this year a break and rest is on order…
Enjoy our Weekly Round-Up Below:
Don’t Be A Rat Brain Trader – Be the Red Striped Zebra !!
Trade Smart !!