The globalists responded by raiding the headquarters of her Front National Party on Monday as part of an investigation into alleged misuse of EU funds to pay parliamentary assistants. They are claiming she paid party staff with European Union funds that are only to be spent on European parliamentary assistants. They’ve demanded she pay back 340,000 euros. The party claims this is a smear to hurt Le Pen in the midst of the campaign. In other words, those in America just lived through this sort of thing for months in our election. I’m writing about this because the chart is vulnerable this week and if the French market decides to pull back, there are plenty of excuses in the natural to make that happen.
To start the week, markets have picked up more or less where they left off last week. It was a freight train right out of the chute. Even the CAC recovered. Oil broke to the upside out of a week-long range. We’ve been doing the cycle work for years. Since the election, the story has been to break one cycle point after another. It’s one of the more powerful sequences I’ve seen in a long time. Even the laggard, the sector I’ve been concerned about which is the SOX is a laggard no more. Housing has improved although it does not have a new high and Transports is at a retest of its high. It’s hard to pour cold water on anything so for today, France is going to have to do.
If there is anything to really pour cold water on, its mining stocks and precious metals which look terrible. I wouldn’t say we have euphoria because it’s hard to get there with the country so divided. I would say we have real complacency because at this point we are getting to the point where it feels like the market has only one direction to go and that direction is up. We’ll have to give it the week to see if something going the other way has a chance to develop. I’ll end where I began because lots of people are making the case for a bubble. This is a rhetorical question. How far into the future will it take to get the public engaged in the stock market again? Is it even possible?