I may be wrong, but it appears to me that the US stock market is overdue for a significant correction.
The first chart below shows that margin debt is now at a record.
Stocks dipped, but came back a bit in the final hours after Europe went home to bed.
This is becoming a familiar pattern.
I had thought that Bessent et al. were pumping the equity market to make the Administration look good.
But as it turns out, the President, and most likely his sycophants, are day-trading stocks, and in some case blatantly front running their own statements.
I have never seen anything like it, and I have seen quite a bit of corruption in my 70+ years.
Gold and silver took a hit in the early trading, but recovered for gains by the end of the day, again.
VIX declined.
The Dollar is in a fairly narrow trading range. A longer term view, as is shown below, makes the wiggles fit into a fairly sensible picture of 'maintenance.'
People are preoccupied with Iran, but the war between Ukraine and Russia is heating up. And it is a powder keg.
Trump issued a statement saying that he has called off the planning military action against Iran for Tuesday, based on request from his Gulf partners.
I think they said they would not permit the US to use its bases in their countries, knowing that a devastating counterattack on their own infrastructure was likely.
Donny is caught in a bit of a stalemate. And he and his outsized ego are obviously not happy.
"So, what happens in the end? Difficult to predict. Each circumstance is different... Others, unfortunately, will seek to do harm as they face a breakup, a divorce, are fired from a job, are outed for their crimes, or are removed from office." Joe Navarro, When Narcissists Fail
Let's see what the rest of this week brings.
There is still time to stock up on essentials that may enter soon enough into short supply, but the window appears to be closing.
Have a pleasant evening.
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