Limbo Dance

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Today, for the first time since Steven Mnuchin’s call to the PPT on December 26th, the ES ever-so-slightly broke its uptrend.

Looking back for half a year, you can see the importance of this a little more plainly. This is hardly calamitous for the bulls, but it’s a bobble, at least.

As you well know, volatility, dynamism, and two-way markets have been strangled to death by Mnuchin, Trump, and Trump’s new lady-friend, Jerome Powell. We’ve gone from nearly 40 to almost the single digits. It’s nothing short of pathetic.

You can also see how entire sectors are exploded higher in a matter of a few months. Look at the semiconductor sector, which has rocketed over 40% higher in just a quarter’s time. Have the prospects of semiconductor companies truly improved nearly 50% so swiftly? Buyers seem to think so.

Semis have been a big part of the massive run-up in NASDAQ valuations. The NDX reached its highest point in human history today, although it slipped a little from its highs.

The Dow Composite looks poised to do the same, although these intraday tumbles are getting kind of intriguing. The big picture, however, remains fully on the bullish side.

Remember that Thursday is the last trading day of the week, due to Good Friday.

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