Why the “Trump Rally” is a Fraud

I very seriously doubt that Trump, nor anyone for that matter, can sharply expand spending while slashing taxes without generating higher inflation and, thereby, higher interest rates. Yet the “market” continues to melt up, supposedly because the new administration will be so beneficial to the economy.  What gives? Without question, trend followers have jumped on … continue reading →

It Doesn’t Add Up

Over the past few years, the “market” has developed a knack for rising in spite of disappointing economic news.  Before CPI reached 2.5%, we usually characterized it as “bad news is good news.”  In other words, a moribund economy increased the odds of maintaining or even expanding the most accommodative monetary policy of all time. But, inflation … continue reading →

Another OPEX

Yesterday morning started out promising for bears.  But, the downdraft in CL that allowed a 13-pt decline in SPX was quickly erased.  From then on, SPX had a great deal of difficulty reaching even obvious levels of support.  Instead, we saw yet another insufferable meltup. CL took the opportunity to gap higher overnight.  So, what does … continue reading →