We confirmed that the long term Dow Jones Industrial Average broad market bull channel is still intact.
The month-end numbers confirm we are by no means facing a major bear market. The market held the Long-Term Monthly Bullish channel suggesting that we are not dealing with a broader change in trend and merely had a temporary correction. This is still in the staging process for wild times ahead.
We are facing a change in public sentiment and 2020 appears to be a serious change in the confidence trend as the general public are beginning to question the government. This shutdown and the possibility of another have only demonstrated that Washington has transformed to just party politics. The wall/border was $5.7 billion, or one week’s interest payments are $6.7 billion! So this has never been about the money, just party politics, pure and simple. It means that we have crossed the line and the government is no longer capable of managing anything. Ultimately, they will face the implosion of socialism as all their promises cannot be funded. The government will raise every tax they can think of, but that will not be enough to save the day in the end. As pensions and debt become the crisis starting around 2020-2021, politicians on both sides will just be blaming the other and nobody will be interested in actually solving anything. We can expect SUBSTANTIAL tax increases to really wipe out economic growth.
The prospects for the US markets remain intact. We are looking at the greatest trade of a lifetime coming on the next Greyhound bus right around the corner. Washington and all governments are now hopelessly lost and fortunately, “the people” inside and outside the US will find a way to move their money into the 4 US Indexes; the safest investments in the world.
InterAnalyst has been serving investors globally since 1990. Authoring hundreds financial articles and publications, thousands of trading charts to investors worldwide.