Nasdaq is up 1.5% this morning!
That's 100 points and that erases all of Tuesday, Wednesday and Friday's losses but we're still, unfortunately well below our 6,870 failure line (10% correction) and the weak bounce line for that is way up at 7,080 – so let's not injure ourselves patting each other on the back on a no-volume pop in the Futures.
I would much rather see the market consolidate and form some sort of proper base before climbing back up – when you build a recovery on low-volume rallies, you have nothing but a house of cards, ready for the next economic wind to collapse it all over again.
The good news this morning is progress on Brexit, hopes that the US and China can make trade progress at the G20 and oil has finally stopped falling at $50 – so the energy sector is having a bit of a relief rally. Also, border patrol agents seem to have saved us from that deadly migrant caravan by gassing women and children who dared to approach the US Border to file legal claims for asylum, rather than trying to sneak in. I guess that's why they call them terrorists – those children sure look terrified (cue music "Proud to be an American").
Now we have to see if the markets can cross the border back into positive territory for the year but 2018 has been an exceptional disaster with 90% of all 70 standard asset classes now down for the year, the worst overall performance since data has been kept, starting in 1901 so it seems Trump has indeed set a record that may never be broken because, not even leading up to the Great Depression have stocks, bonds, metals, munis, energy, metals – even crypto currencies – ALL down for the year!
I had predicted way back on Jan 25th that 2018 was going to be a stock picker's market (our favorite kind) and, oddly enough, Apple (AAPL)…