Stock Market: A Perfect Storm

The bond market was still lower despite the Federal Reserve optimism that inflation is going to remain in check but this could set the tone for some more weakness in the stock market. We got other problems going on with the Nasdaq and the FANG stocks and Facebook (FB) and all that seems like it could be a perfect storm brewing in an overvalued US stock market.

The Anti-Dollar Trade

I am totally all-in on this anti-dollar trade and and so this type of sentiment by retail investors on top of all of the other economic indicators market indicators that I am seeing simply cements for me how right I ultimately am on this investment strategy.

Related trading instruments: 

• Market Vectors Gold Miners ETF (GDX)
• Market Vectors Junior Gold Miners ETF (GDXJ)
• SPDR Gold Trust ETF (GLD)

Thoughts On The Stock Market Bubble

There's no way that if you are investing rationally if you are buying value stocks right and using your brain, there is no way that you're gonna outperform a bubble. Nobody can do that but of course once the bubble pops that's when the outperformance comes in. I mean and if it's a bubble you are guaranteed to outperform it if you just can wait it out because bubbles by definition always pop and when they do they collapse.

Related trading instruments: 

• SPDR S&P 500 Index ETF (SPY)
• iShares Russell 2000 Index ETF (IWM) 
• Nasdaq 100 Index ETF (QQQ) 

Did Kudlow Put In A Floor For Gold Prices?

Larry Kudlow shares his views on gold and the US Dollar.

Related trading instruments: 

• SPDR Gold Trust ETF (GLD)
• Market Vectors Gold Miners ETF (GDX)

Markets: Trump, Kudlow, Tariffs

What is Larry Kudlow done most of his life? He's been a TV personality like Trump. Yes he has worked at Bear Sterns for a while but most people know him from CNBC as a commentator and he has a lot of connections, he's regarded on Wall Street and I think this is the president trying to make that overture. This is all about show remember he's a showman.

I think that Kudlow is ultimately going to come out in support of whatever tariffs the president wants to adopt. Maybe they'll pretend that Kudlow had some influence on maybe targeting the tariffs in the right direction. Nothing has changed simply because Larry Kudlow has been has been nominated. It simply to me indicates a kind of a smart move on the part of the President given the agenda that he wants to pursue.

Markets: US Dollar, Gold

Even with today's bad economic data even with the downward revision by the Atlanta Fed the US Dollar was up slightly today. Gold was flat, it didn't really go anywhere. Nobody really perceives what's going to happen.