Transformative trends - tend to deliver at least a modicum of very nervous jitters among analysts; central bankers; politicians; and certainly CEO's in all industries that are impacted by our anticipated 'technology transition year' of course; but also the rapid changes that loom with regard to global trade.

Essentially a transformation of global society is being proposed; sometimes radically presented (through failure to really look at how money flows and a lot more than the basics like equity inequality and so on; regardless of how very important that is to keeping the social fabric of societies fairly stable).  

If you take a gander at what globalists and deeper thinkers have in mind; of course it threatens the power bases of politicians everywhere; and they tend to fight that. On the other hand, while one can commend the idea of money freely-flowing (ie: cryptocurrency / blockchain border-less efficiencies), that also is the bane of having some proponents remaining fairly naive by virtue of their ignoring the nefarious aspects of such otherwise-futuristic transfers.

That's where regulatory authority not only is advisable; but it's clearly going to occur, despite protestations. However, whether it's structured with private, corporate or governmental oversight (or even a multinational entity) will be a long-term development. The implementation of blockchain itself is ongoing.

Here we have focused primarily on three areas of transformation: one, sure is the technology transition, for which 5G and AI are the most recognized or well known representations of the about-to-be-seen newer communications and control systems. The recent 'deals' between AT&T, Microsoft as well as IBM are not agreements between strange-bedfellows; but makes sense.  

The stabilization and working-relationship in smaller stocks like Ceragon as they team with NEC while maintaining relationships with Vodaphone and of course AT&T mostly in Latin America; also expand their future footprints.  

In sum: The market hovers not far from historic 'Index' highs, amidst fairly good optimism for the future, which implies people accept this as a decent consolidation pending answers on the trade and political fronts as well. At the same time S&P is retreating generally as outlined, with faltering rallies in an alternating way that increasingly stair-steps lower despite periodic efforts to revive an upward phase that ended in early-mid July per the forecast. As the decline is led by some of the FANG / MAGA type stocks, it has a degree of volatility (even in both directions) that reflects the concentration in those stocks, and the absence of bids the moment traders get nervous.    

Next week we get several major earnings reports; such as Alphabet, and Intel and others like Facebook, which has challenges on a few fronts. The top line numbers for it and others should be good; and everyone was fairly conservative about this year; so achieving estimates isn't too difficult. But, like looking at Microsoft or Amazon; you often make the numbers and then get an up-down sell-off; and that's basically what we thought likely and it's sort of an ongoing series as we work through the earnings reports. It's hard to be buyers of already-expensive stocks even on good news; and realizing if the numbers are missed (Netflix) the shares immediate hit air-pockets. 

The market continues to underestimate Persian Gulf risks, and that may relate to President Trump's efforts to apply restraint on Iran; but with threats of further sanctions to sort of play hardball getting them in a more compliant mood. The Europeans want a deal with Iran; the U.S. does not need it, but also has reasons to seriously try to avoid engagement. Risk of a conflict are increased by the U.K. really at loggerheads with Iran; and a 3rd British warship should arrive over the weekend enhancing Royal Navy capabilities in the region. The President 'said' we don't have an agreement in writing with Britain (actually we do, it's called NATO); although he stated support as we're 'working with them' and maybe a new Prime Minister (his tendency to slip personal barbs was there too; but not really relevant).

Monday probably starts defensively; but the degree may depend on what if anything happens over the weekend. As efforts to deescalate Iran tensions are just getting underway; it's conceivable that aside accidental engagement nobody wants to see active hostilities at the moment. However the focus on the Fed probably dominates, and a market that 'needs' a rate cut with S&P near all-time highs is a market that doesn't warrant a rate cut based on data as it defies common sense and could easily become counterproductive.