Intelligence > Experts Column > 3.16-The Morning Call:She Did, He Didn't, He is, We Are,They're What?

3.16-The Morning Call:She Did, He Didn't, He is, We Are,They're What?

By Editing NAI
03/16/2017 7:04 p.m.

Yellen Did. She went 25 b pts. It was 100% in the market. Huge Shorts had been built up. After the news, the big unwind commenced. Interestingly, Goldman has cooled on Stocks. We know what the cynics say.

Wilder didn't Win in Holland. The centre-left, the VVD,won 33 of the 150 seats. Wilder's guys won only 20.The real Star of the Election was a 30 year old of Morrocan descent. Take that Mr. Wilder.

Trump Didn't get his Muslim travel ban. This time a Judge in Hawaii re-read Trump's campaign rhetoric. He said that it is trying to be a Muslim ban. That's unconstitutional.Trump has to learn that words have consequences. Specially, if you're POTUS.

The markets all took off after Yellen's Hike. Cynics called it a relief Rally. They were relieved because she actually did something. Many commentators liken the action to a past period called "Goldilocks". Yellen said that the economy " is doing well". The Bank of Japan did nothing to Rates. The PBOC raised rates for the 3rd month in a Row. The Reverse Repo was up 10 b pts. Like the Trade deficit, many things suggest to us that China is Growing again. Even stranger is that Goldman is cooling on Stocks. Hummm.

The US Housing Starts were up. Singles up 872K. Last time at this level was October 2007. The SAAR of the overall Starts was 1.288K. The Weekly Claims were down. The Bonds Rallied. It's very unlikely that bonds break a 30 year downtrend on the first Go. Or the Second. Or the Third. We Believe that they will. This is not 3 Steps and a Stumble. This is 1994. Markets took off after the Third Hike. To quote a former President. The Economy was getting better, Stupid.

Invest the Money.

Today in 1991. the Dow crossed 10K for the first time.

Regards,
 
Edward Pennock CFA, Founding Partner

 

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