What’s going on in the world…
Market opens higher again after an explosive session yesterday. The S&P is back to the highs on the young year and has erased 2/3 of the selloff from the all-time highs of September. Much is being made of the S&P closing above the 200 DMA yesterday, which sounds really good on the face of it, but doesn’t have a great deal of technical significance. But it certainly isn’t Bearish. Demand for stocks has increased greatly, almost to the point where investors have forgotten December. The only thing that has changed is the Fed. That’s a big one. But many of the issues have yet to be resolved and the Market seems to be pricing in resolution already. Deadlines keep getting pushed. It looks as though the March 1 deadline for tariffs will be extended and Brexit might stretch past March 29. Kicking the can down the road has been a government favorite for years. It’s back in vogue. The US national debt cleared $22 Trillion yesterday for the first time. It cleared $20 Trillion last year for the first time.
Have a great morning,
Mike Frazier
