Stocks Bounce, but Fail to Erase Previous Losses; Congressional Republicans in Shock

Stocks rebounded from Tuesday's drubbing, but not nearly enough to erase the damage done, a classic dead cat bounce.

News was heavy, most of it coming out of Washington, where President Donald Trump reportedly reached agreement with congressional democrats on not only a debt ceiling increase but funding for hurricane Harvey victims and at least the outline of a continuing resolution. The proposed legislative deal would fund the government through December 15, upsetting - only in Washington - Republicans, who hoped for a longer debate on all of the issues.

Obviously, Trump has determined that with friends like his fellow Republicans in congress, he doesn't need enemies, thus making compromises with Democrats. It's actually - for a fellow who's supposedly not a politician - pretty smart politics. Republicans, included Senate majority leader, Mitch McConnell and House leader, Paul Ryan, were reportedly angered over the development.

Wall Street was immediately impressed, though stocks tailed off noticeably into the close.

Trump also tamped down recent bellicosity toward North Korea, hoping that China would do more to keep leader Kim Jong-un on a short leash.

Federal Reserve vice-chairman, Stanley Fischer announced that he would retire from his position on October 13, a surprise leaving open one of the most prestigious seats in Washington and a puzzler for Fed watchers. Fischer cited personal reasons for his decision, but speculation is that the departure has more to do with health than money, but suspect that Janet Yellen will be out at the culmination of her term in February.

Hurricane Irma continued to barrel towards Florida, the Fed's beige book revealed that members thought the economy was showing signs of improvement, though the continuing bemoaning over a lack of inflation was prominent.

While stocks improved modestly, the effect was greater on fixed income and precious metals. Gold and silver halted their recent advances and bond yields rose, with the 10-year note increasing to 2.11%

Overall, nothing was settled, except that Washington might actually avoid the drama that usually surrounds debt ceiling and budget debates, which is actually quite a positive development.

Trump making deals? Who knew?

At the Close, 9/6/17:
Dow: 21,807.64, +54.33 (+0.25%)
NASDAQ: 6,393.31, +17.74 (+0.28%)
S&P 500: 2,465.54, +7.69 (+0.31%)
NYSE Composite: 11,872.92, +45.77 (+0.39%)

Political Theater Weakening The Dollar; Silver, Gold Up

After setting new record all-time highs (again, and again, and again) yesterday, core investors in the S&P 500 took a back seat to the NASDAQ nutcases who pushed the index to another record close.

While this is beginning to be reminiscent of the 1999-2000 tech bubble and bust, we're still in the bubble stage, so hang on to whatever you're not trading. If you must, get some protection in cheap NASDAQ put options to protect your position.

In case you're not invested in stocks or are more interested in baseball, the NBA playoffs or the current political circus in Washington, a close eye on the dollar index might be a suggested tonic, which goes well with either gin or vodka.

Wiht the dollar index down, gold and silver registered nice gains on the day, but, as soon as the crooked dealers at the COMEX get wind of it, that will change. Gold and silver bugs keep hoping that the current fiat system implodes, which would likely enrich them, though that's an old conclusion not necessarily in order these days.

Taking close to a one percent hit on the day (could it possibly be because even Republicans are now openly in opposition to President Trump, along with the requisite fake outrage from Democrats?) the political climate in Washington is beginning to sour experienced traders and geo-political watchers, mostly because it doesn't take a break. The opposition to the current sitting president is outrageous and loud, and the fear is that something is going to break, if not the President's tweeting pattern, then maybe blood vessels on house minority leader Nancy Pelosi's forehead.

Then again, majority leader Paul Ryan's sound bites on the "Trump gave Russia top secret info" fake news has to make one wonder just what the deep state has on him. He looks like a square guy, but he acts like a Democrat, unless, of course, Trump pushes through a healthcare reform bill or something along those lines. Then he's all glad-handing and giddy. The guy has no political future, and, unless the press and the Democrats begin conducting themselves in more decorous manners, neither does the country.

At the Close, 5/16/17:
Dow: 20,979.75, -2.19 (-0.01%)
NASDAQ: 6,169.87, +20.20 (0.33%)
S&P 500: 2,400.67, -1.65 (-0.07%)
NYSE Composite: 11,606.49, -7.75 (-0.07%)

Stocks Slip As Ryan Pulls Obamacare Repeal/Replace Bill

Lacking the necessary support from rank-and-file Republicans, House Speaker Paul Ryan yanked the Obamacare Repeal and Replace Bill that had been scheduled for a vote today in the House of Representatives just as US stock markets closed.

The bill had been on shaky ground for weeks as various splinter groups within the Republican party had issues with the wording and its hasty implementation.

According to various polls, the American public didn't appreciate the bill much either, as it was getting to be regarded as Obamacare-Lite.

This leaves the Republicans, especially Speaker Ryan, with plenty of egg on their faces and an uphill battle in the congress against entrenched, obstructionist Democrats.

Most sane people are seeking relief from the poorly-named Affordable Care Act (ACA) that has featured skyrocketing healthcare premiums and absurd deductibles, most upwards of $5000 per year.

Though the official word that the bill had been pulled came moments before the Wall Street close, apparently there were many who saw it coming. The Dow Industrials ended a see-saw week with a near 60-point loss. The S&P and NYSE Composite finished with losses as well, though the NASDAQ managed a small gain.

All major indices were lower for the week.

At The Close, 3/24/17:
Dow: 20,596.72, -59.86 (-0.29%)
NASDAQ: 5,828.74, +11.04 (0.19%)
S&P 500: 2,343.98, -1.98 (-0.08%)
NYSE Composite: 11,419.14, -11.76 (-0.10%)

For the Week:
Dow: -317.90 (-1.52%)
NASDAQ: -72-26 (-1.22%)
S&P 500: -34.27 (-1.44%)
NYSE Composite: -170.13 (-1.47)