SPX - Stairway to WTF!!!
BLUF: The boost to Main Street via reduction of the cost of credit, a key business input, may cause the economy to do better and for the general stock market to rise as a result.
Triggers:
1) FOMC speaks in Switzerland…nothing new…standard Fed Speak…”Extend the economic expansion” that’s means on 18-19SEP they cut 25bps and not more, they remain “Reactive not Proactive.” Folks it is called the Feds “Credible Threat”…perception is all the FED has and currently they have it…Longterm TBD???
2) Government Spending cranks up…Treasury filling all accounts and Fed replacing MBS with new UST’s.
3) Mr. T continues to tweet and does the Feds job for them as a “Dual-Credible-Threat” also and he doesn’t even know it…Pure Comedy!
4) Trade War, does it really matter…currency debasement will take care of that…TBD!
5) FONIR...Fear of Negative Interest Rate = SP Yields Higher than 10yr UST...its a race for yield! WTF!
Closing:
If it was easy then it would not be any fun..."The Only Easy Day Was Yesterday" !!!
Break out your Pat O'Briens Hurricane mix...your gonna need it! Cheers
SPX potentially 3100 soon…TBD! LongTerm: "Diversified Portfolio = Hard Assets...getty up!