The Nasdaq picture here says 1000 words to me. We had some consolidation after the Trump-Xi tariff fight and that’s basically resolved and we have a breakout.
It’s been a sensational rally since April but the Fed is going to cut this week and will almost certainly signal more cuts to come. Is that responsible? Probably not but it’s what is going to happen.
Then layer on that we’re at the beginning of the best seasonal period of the year and there is a solid chance that we see traders and fund managers YOLO into year end. I’m again reminded that from October-March of 1999-2000 the Nasdaq rallied 50% before the dot-com bubble blew up.
I would hate to be the last one to arrive to this party but there is a US administration that’s wholly focused on the market and now Beijing’s former mouthpiece is saying this:
US, stop making trouble! As long as the US doesn’t provoke first, China will definitely not start trouble. Good news came from negotiations in Malaysia yesterday- today almost all global stock markets rised. Isn’t this better?Let’s all make money!
It’s as if everyone thinks all the problems of the world will go away if we make the numbers on the screen go up but when it’s just multiple expansion we’re playing a dangerous game of musical chairs.
