Thank God for SlopeCharts. It gives me a creative, beneficial distraction from this New Highs Every Day No Matter The News market we’re in. It gets better, you benefit, and I don’t lose my mind. Everyone wins.
But I’ll take my hands off my eyeballs and look at a few ETFs and share a few words about them. First up is crude oil, which is probably going to have some excitement on Wednesday, between the inventory report (10:30 EST) and, much bigger, whatever rumblings come out of the OPEC meeting. As much as I’d love to see this crumble, the chart definitely looks more bullish than bearish.
Financial stocks absolutely ripped higher Tuesday, thanks to the tax
fraud reform that seems to be sailing through the halls of Congress. The modest regulations placed on banks after 2008 seem ready to be erased.
Gold miners are looking awfully vulnerable. If we see tax reform pass, I strongly suspect that red horizontal is going to fail, and the bear market in gold is going to get even worse.
Out of the 80 ETFs I follow, just about the only one that still looks even remotely bearish is Mexico (that is, EWW).
More common is the lifetime-highs-every-day format of the Japanese fund, which had a resolute breakout and seems poised for more gains in 2018. Groan.
The ultra-bullish fund below illustrates quite well the power of the uptrend and how, unlike in 2011 and 2015, there hasn’t been a breather in this Trump bull market for nearly two years now. We’re mashed up against resistance, sure, but I gotta say, plenty of financial instruments have decided “to hell” with resistance and have skipped above it. Same could happen here.
So the bearish blood is just about tapped out, folks. The CBs have won, and Trump has nearly daily fodder for his insatiable need for braggadocio. At this point, the only thing that fails is words.