A Powerful Trumpet And Where The Markets Go Now
The world looks at Trump as the reason for the bull market.
They see the rhetoric of Bernie Sanders and Bloomberg with his Green Agenda and the view outside the USA is that the bull market would be over.
That perspective from outside the United States can impact the capital inflows which have been moving into equities. It does not matter if you are pro or against Trump. You must understand the other person’s view for that is what makes them act.
The state of the economy outside the USA is absolutely horrible. The US economy is still the best thing out there including Trumps new tax rates. That does not mean that the US will boom.
It likely could slow down, but as I have mentioned in prior posts, it’s just that everything outside the USA will be remain worse.
So, here is where do the markets go now?
The Dow is leading the direction of the markets currently. You can see this by noticing the sell signal last week in the Daily Trading Charts it was the first to alarm us.
Remember that the Dow barely made a new high in Feb, the high it made is still indicative of a pause in trend. I began noting that market manipulations were appearing and Gaps up were going to eventually fill. Our exit signals was on the 18th.
Two of the four up-gaps created last year have filled with this recent decline, but there are 2 other gaps that have not filled yet.
More importantly, where are the markets going now?