Limbo Dance

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

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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.

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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.

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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.

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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.

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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.

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