Another week, another rally, nothing strange there as its par for the course for this market. But if we put this in a historical perspective it becomes very strange.
I’ve never predicted a crash but to give you some historical perspective this is the cycle work from the 82 bottom to the top of the 87 market. That is 263 weeks. In case you forgot, the 2007 top came roughly 261 weeks from the end of the Internet bear. Right now, the Dow is holding its high for a whole week which is 23485. The 2009 bottom is 6469. That happens to be a rise of 263%! From the 2016 bottom, we are right at 90 weeks.
The problem hit in tech which suddenly went through the roof on Friday on Amazon earnings. Tech had been lagging but now it hit the new high while the Dow did not. Neither did the Transports. Biotech is also days off its high. But the SOX not only set a new high on Friday, it did so again today.
In other news we’ve been following, Spanish Prime Minister Rajoy did invoke Article 155 of the Constitution to strip the Catalonian parliament of their power. Carles Puigdemont, the now former Catalonian leader declared independence on Friday. The problem is nobody is sure what that means. For us, markets didn’t budge much one way or the other which means the crowd doesn’t seem to be too concerned.
Here in America, the Clintons had a very bad week with new revelations concerning the Uranium One deal. Greg Jarrett, legal expert, and Fox personality stated Mrs. Clinton is guilty of at least 13 major crimes including racketeering, fraud, mail fraud, not reporting $145 million that flowed to the Clinton Foundation as a result of the deal which permitted Putin to get 20% of America’s uranium among other issues. Then there is her email server problems. There was a board who approved the deal which included former AG Eric Holder. He knew about it and there is evidence Robert Mueller knew about it as well. There’s your real Russian collusion. Then we have the fake Russian dossier the DNC paid over $9 million for that. It was spread as fake Russian propaganda to try to influence the election. The real question is whether the Obama administration used this dossier as a means to get FISA warrants to surveil and unmask members of the Trump campaign. If someone can come up with a link to that, it opens an entirely new can of legal worms and problems which would go all the way to the top. For any of you who might be doubters, there is an FBI informant who was cleared to give his testimony to Congress last Thursday concerning all the dirty dealing from 2009-14. His attorney says there are taped conversations, records and emails which will provide lots of meat on the bone.