Believe it or not, Administrations Actually Don’t Like Big Rallies in the First Year of Their Term.

The Trump Administration is about to become a lot more hawkish on tariffs

As usual, we spend time on several different issues this weekend. Some are on the bullish side of the ledger…while others are on the bearish side. We just like to reiterate every once in a while, that one of our goals is to present issues from both sides of that ledger…while still letting you know which side of it was stand at any given time. The other two goals are to be correct with our conclusions…but to also help you think about the markets in a way that you would normally not think of them……Thank you and enjoy the rest of your long weekend!

Table of Contents:

1) How much more hawkish will the President become…now that he has some key leverage once again?

2) A big run in the stock market in the second half is the last thing the Administration wants. (We’re serious.)

3) Nice breakout in the financials (especially the banks). They could/should see a near-term breather soon.

3a) However, you’ll still want to be a stock picker within in the financial sector.

4) Don’t get fooled by the bond market’s reaction to Thursday’s employment report.

5) The charts on the major averages. They’re getting ripe for a near-term pullback.

6) One key economically sensitive sector is testing some key resistance levels.

7) There are some real concerns about the UK, but their markets haven’t been hit as hard as the headlines portray.

8) Gold and silver are close to levels…which, if broken…will be very bullish on the technical side of things.

9) Potpourri…..Could the healthcare sector see a surprising rally this summer?

10) Summary of our current stance.