Market Report 12/29/16,sell stop 19650,gain(1550),CG(00)m11/21/16
The Trump/Goldman Sachs victory rally seem to be losing steam, reversing for a loss of 14 to to 19820. The DJI and SP500 are money markets and with Yellen's firm conviction to raise rates that will increase US debt service by 200 billion for a deficit to over $1 trillion per year, the markets must respond with corresponding higher earnings and dividends, which is very doubtful when Trump shifts production back into the US, cutting margins to the bone.
DJI closed down 14 to 19820, still above the sell stop of 19650, and above upper band of the declining resistance trend in force since last December. Yet the hostilities between President-elect Trump and Obama appointee Janet Yellen are far from over, since she promised more rate hikes that almost certainly will cause a drop in GDP and market crash shortly after January 20th, 2017. Watch the sell stop at 19650.
Gold bounced to 1161.7 despite to Yellen's selling gold contracts and falling dollar, 5 stochastics down, 4 up, /GC searching for a bottom as Yellen has been printing money like crazy to pretend that she supports her new boss in the White House, while in fact she is digging a shallow grave for Trumponomics.
US dollar continued falling to USD/CHF 1.0203, six out of 9 stochastics down, an indication that the so called Yellen's raise of rates is in sight, DJI futures are currently up 48, indicating possible politically inspired move to close over 20,000 before the miserable watch of Obama is over.
Our long position is continuing to muddle through the news with a gain of 1500 Dow points so far, with a distant stop at 19650. Last year's return on our DIA based portfolio was 6995 points or 36%.
DJI closed down 14 to 19820, still above the sell stop of 19650, and above upper band of the declining resistance trend in force since last December. Yet the hostilities between President-elect Trump and Obama appointee Janet Yellen are far from over, since she promised more rate hikes that almost certainly will cause a drop in GDP and market crash shortly after January 20th, 2017. Watch the sell stop at 19650.
Gold bounced to 1161.7 despite to Yellen's selling gold contracts and falling dollar, 5 stochastics down, 4 up, /GC searching for a bottom as Yellen has been printing money like crazy to pretend that she supports her new boss in the White House, while in fact she is digging a shallow grave for Trumponomics.
US dollar continued falling to USD/CHF 1.0203, six out of 9 stochastics down, an indication that the so called Yellen's raise of rates is in sight, DJI futures are currently up 48, indicating possible politically inspired move to close over 20,000 before the miserable watch of Obama is over.
Our long position is continuing to muddle through the news with a gain of 1500 Dow points so far, with a distant stop at 19650. Last year's return on our DIA based portfolio was 6995 points or 36%.
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