News

Elijah and the Karaoke Singers Hit a Few Low Notes.

Posted on by thependulumswings staff

Infrequent visits to karaoke bars have all resulted in the same result for this writer.   Friends, family, strangers, and bouncers alike all highly recommended that I “keep my day job.”  Well, their point is understood to a point.  Yesterday, if you had a day job good for you.  Those job responsibilities hopefully kept you safely away from a live stream or TV and therefore from watching the U.S. House of Representatives Oversight Committee hearings.

The plea deal guilty Michael Cohen, aka Donald Trump’s decade long plus personal lawyer, took an oath to tell the truth to answer questions from blood thirsty Republican and Democrat Representatives.  It was the same pledge he took a while back then summarily lied through his pearly whites.

His 30 minute long (unprecedentedly long some said) opening manifesto only occurred after a vote to postpone was rejected by the majority Democrats.  It seems like the Republicans didn’t take too kindly to the prior night’s coaching and prepping session Cohen took part in with honorable reps, Adam Schiff among them.  And so Cohen began his 1800 second assault on anything his attorney, Lanny Davis (the Clinton family’s honorable lawyer and confidant) and he could think about to poke, jab, and stab at President Trump.  The speech touched on racism, womanizing, Stormy Daniels, hush money, repayments, son’s of Trump, Russian collusion (except he couldn’t call it collusion because of that silly under oath thing), payoffs, Trump Towers, and the like.

It even painted a picture of a Donald Trump picture, er portrait.  Cohen orated that Trump instructed Cohen to insure that a straw bid occur at an auction where Trump’s portrait was up.   As the last item in the auction a 60k bid secured the piece and secured the fact that it was the highest price paid for any portrait offered.  Cohen told us in this rundown that Trump has a big ego.  The hearings likely cost taxpayers far greater than 60k a minute.  So America paid about 180k to learn that Trump has a high opinion of himself.  Quite revealing isn’t that?

Then the fun really began.  Democrats asked if Cohen knew of any Trump drug use.  They asked if he ever provided money to any woman for “personal healthcare.”  Each of the Republican reps spent their five minutes calling Cohen a convicted felon, known liar, jealous lawyer, and scorned “White House employee want to be.”

What substance came of all of it?  Little.  The Russian collusion theory should now be put to rest once and for all.  But it won’t be. Trump reimbursed Cohen over 12 months for silencing Stormy days before the election.  Shameful perhaps.  Criminal? Nah.  Paging the Mueller Investigation.  Mr. Mueller what have you?

When it was all done Oversight Committee Chairman Elijah Cummings eloquently and passionately told the honorable committee’s rank and file, Cohen, and a worldwide TV audience that “WE ARE BETTER THAN THIS!”  He also asked that we leave our democracy in a better place than we found it.  It sounded like he wanted to Make America Great Again.

Was this entire day the first step, launched by the Lanny Davis aided Cohen speech towards finding something/anything to eventually vote to impeach Donald Trump?  Perhaps.  Perhaps.

And perhaps it is once again a loud, Cummings loud, reminder that votes really, really matter.  The American people voted Trump into office in November 2016.  The American people voted and enough Democrats won in November 2018 to flip the House to the Democrats.  The Oversight Democrats voted to make disgraced and disbarred Michael Cohen their star witness to dig dirt on you know who.   It was these same Democrats that voted to not postpone the hearings with the coaching so fresh in Cohen’s mind.  If the House stayed red there would have been no Cohen testimony.

Will the next big vote that matters eventually be cast by the House to attempt to over throw Trump?  Or will it be in the general election in November of 2020 to vote for or against Trump?  Cohen warned us in his closing remarks that if it were the latter that he had concerns that the transition from Trump to “fill in the blank” could be accomplished peacefully.  Over Cohen’s right shoulder Lanny smiled.  Mission accomplished.

We looked carefully at how the committee conducted itself in its “day job.”

We hope that they can sing.

 

New York Makes an Amazonian Sized Mistake

Posted on by thependulumswings staff

It’s old news to you now that Amazon, Inc., try as it might to not, decided to pull the plug on their new New York headquarters #2.  A year-long “contest” ended with Virginia and New York both winning the “Amazon please be thy neighbor” prize.  But, then New York started acting like a petulant child.  The new news is a peek behind the curtain that fascinates.

This link is an open letter from a NY official that details the why of the wow.  Reading the details is like watching a train wreck in slow motion.   Wow indeed!

Start spreading the news, New York, New York failed to deliver a huge, gift wrapped economic boost to its people.

Stocks Rally To Close Higher For The Week

Posted on by thependulumswings staff

Independent Investment Management designed to protect and grow your wealth.

JIM CARLTON
Managing Director
Chief Investment Officer

Friends

Stocks rallied today after yesterday’s modest selloff as hopes continue to build that a trade deal with China will eventually come to fruition. This, despite the continued weakening economic data and another disastrous earnings release from a large American icon Kraft Heinz. As we have mentioned, the weakening economy will surely keep the Fed on the sidelines for a while.

For the day, the Dow Jones Industrial Average was up 181 points to close at 26,032. The S&P 500 was up 17 points to close at 2,792. Gold was up $2 to trade at $1,330 per ounce, while oil was up $.25 to trade at $57.21 per barrel WTI.

Despite the less than perfect conditions, stocks posted gains for the week, as has been the case all year long. Every time the bears think they have an upper hand, the bulls sweep the carpet right out from under them. Let’s see if the bulls can keep the bears frustrated next week.

Have a great weekend everyone.

Jim

10200 Grogan’s Mill Road, Suite 340
The Woodlands, TX  77380 
(281) 298-2700 Phone
(877) 824-4299 Toll Free
(281) 298-2760 Fax

[email protected]        www.chjwealthmanagement.com

Investment Advisory offered through Carlton, Hofferkamp & Jenks Wealth Management, LLC (“CHJ”).

*Numbers and figures sourced from the following: Bloomberg.com, CNBC.com and Finance.Yahoo.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

CHJ Wealth Management,
10200 Grogan’s Mill Road,
Suite 340
The Woodlands, TX 77380

Weak Economic Data Weighs On Stocks

Posted on by thependulumswings staff

Independent Investment Management designed to protect and grow your wealth.

JIM CARLTON
Managing Director
Chief Investment Officer

Friends

A plethora of less than stellar economic data finally put a little damper on the nearly 7 week rally. With interest rates extremely low and the Fed now firmly on the sidelines with regards to future rate hikes, the markets are going to have to decide going forward, if bad news is bad news for stocks or not. You know the drill, bad economic news guarantees an accommodative Fed therefore insuring that monetary policy is back to being a tailwind for stocks. With low interest rates, stocks become the only game in town, despite the fact that we are entering an earnings slowdown. This will be an interesting tug of war as we move towards the spring. Is bad news good news for stocks or not? Which is more important to market participants- dovish monetary policy/low interest rates or positive earnings growth?

As for today, by the close the Dow Jones Industrial Average was down 103 points to finish the day at 25,850. The S&P 500 was down 9 points to close at 2,774. Gold was down $19 to trade at $1,328 per ounce, while oil was down $.33 to trade at $56.83 per barrel WTI.

The bears finally had something to cheer about today, but I wouldn’t go so far as to say that they have claimed the high ground just yet. It is clear that the domestic economy as well as global economies are slowing, but what is not clear is what is more important to investors. Slow economies mean accommodative central banks around the world, and for about 10 years now, stocks have been the beneficiary (most of the time). Let’s see how the week finishes out tomorrow.

Have a nice evening everyone.

Jim

10200 Grogan’s Mill Road, Suite 340
The Woodlands, TX  77380 
(281) 298-2700 Phone
(877) 824-4299 Toll Free
(281) 298-2760 Fax

[email protected]        www.chjwealthmanagement.com

Investment Advisory offered through Carlton, Hofferkamp & Jenks Wealth Management, LLC (“CHJ”).

*Numbers and figures sourced from the following: Bloomberg.com, CNBC.com and Finance.Yahoo.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

CHJ Wealth Management,
10200 Grogan’s Mill Road,
Suite 340
The Woodlands, TX 77380

“Made in China” made February 21st Relevant

Posted on by thependulumswings staff

Yearly February 21st holds little cache’.  Sure it’s a week after Valentine’s Day so it might be remembered for throwing out dead roses that warmed hearts for about five minutes.  But in 1972 February 21st was a day that warmed an ice-cold relationship and in turn gave hope to a world that had plenty of cold wars brewing.

President Richard M. Nixon arrived in Beijing, the capital of the People’s Republic of China, on the first ever US President’s visit to the world’s most populous nation. Because the U.S. federal government had formerly opposed China’s communist government since it took power in 1949, Nixon was also the first president to visit a nation not recognized by the United States. In Beijing, President Nixon met with Chairman Mao Zedong.

At the Shanghai Communique on February 27, Nixon and the Chinese premier agreed to lessen the risk of war, expand cultural contacts between the two nations, and establish a permanent U.S. trade mission in China.  The two leaders also secretly discussed how they could work together to carefully watch the growth of Soviet power in Asia and elsewhere around the globe.

It was progress, but it was begrudging and it churned forward slowly.  As the years wore on the trade between the two superpowers grew and grew.  But so did the trade imbalance and the tariffs imposed by China.  Both have risen geometrically and unchecked by the US.

And now a mere 47 years later President Trump is attempting to tackle it.  He is seeking what he calls trade equality.  In short he states that he wants to balance the trade imbalance-make the China exports and imports more equal in dollar value.  And he want the tariffs (taxes imposed by both countries on incoming goods) equalized as well.

After years of trade agreements that bound the countries of the world more closely and erased restrictions on trade, a populist backlash has grown against globalization. This was evident in Trump’s 2016 election and the British vote that year to leave the European Union.  You know, MAGA.

Critics note that big corporations in rich countries exploited rules to move factories to China, then shipped these goods back to their wealthy home countries while paying low tariffs. Since China joined the WTO in 2001, the United States has “lost” nearly 3 million factory jobs, though many economists believe a significant percentage of that loss is not just to trade but to artificial intelligence(robots) that replaces human workers.

President Trump blames what he calls their abusive trade policies for America’s persistent trade deficits — $566 billion last year. Most economists, by contrast, say the deficit simply reflects the reality that the United States spends more than it saves.

In 1972 the US was very divided over Nixon’s visit to China.  “Why should America even step on communist soil?” was a constant retort.  Just shy of two years later Richard Milhous Nixon was impeached for all together unrelated reasons.

In 2019 the US is very divided over the imposition of these tariffs on China as well as the many other nations that the Donald John Trump team has renegotiated trade deals with.  “Why mess with what has been working?” is the constant retort.

In fact in 2019 the US is very divided over everything.  Two years from now a new congress and either a new president or President Trump are sworn in to office.  If it’s a new congress that takes control of the Senate and President Trump is reelected might he be impeached for all together unrelated reasons?

If you are old enough you can still hear the tone and see President Nixon as he assured America, “I am not a crook!”

What fate lies ahead for President Trump?  And what will he say when he exits the American political stage whether forced out, elected out, or has served the maximum eight years allowed by our Constitution?  Our guess is that it will be strongly worded regardless of the pulpit, the audience, and the reason.

Meanwhile, the cost of your “made in China” items are about to go up it seems because Trump thinks China is a crook.

 

 

The Edmund Fitzgerald

Posted on by thependulumswings staff

We have a hunch that you have either heard the song “The Wreck of the Edmund Fitzgerald,” hummed along with it, or even contemplated the words of the over six-minute long ballad.  It’s one of those that once in, you can’t get it out of your head.  It was sung by Gordon Lightfoot and released in 1976.  The popular ballad made the sinking of Edmund Fitzgerald one of the best known disasters in the history of Great Lakes shipping.

But for being one of the better known disasters in Great Lakes history the November 10, 1975 sinking remains to this day quite a mystery.

Some of the known’s follow.

  1. The “Fitz” as it was nicknamed first launched in 1958.  It was the largest ship to have sailed in the Great Lakes and remains the largest to have ever sunk there.
  2. The ship and its crew had safely navigated over 1,000,000 miles in its 17 years in the lakes mostly taking the very same route each time. That is the equivalent of several trips around the globe.
  3. It left Superior, Wisconsin on 11/9 with a quite full load of iron ore (26,000 tons) and was riding low in the water per its design.
  4. Its destination was just outside of Detroit even though Lightfoot sang its destination as Cleveland.
  5. Its captain,Ernest M McSorley, a grizzled veteran, saw the weather forecast prior to embarking and thought the worst of a gale force wind storm would pass south of Lake Superior when they got there.  It didn’t.
  6. En route to a steel mill near Detroit, they joined a second freighter, SS Arthur M. Anderson. By the next day, the two ships were caught in a severe storm on Lake Superior, with near hurricane-force winds and waves up to 35 feet high.
  7. Shortly after 7:10 p.m., Edmund Fitzgerald suddenly sank in Canadian (Ontario) waters 530 feet deep, about 17 miles from Whitefish Bay.  It was near the twin cities of Sault Ste. Marie, Michigan, and Sault Ste. Marie, Ontario.  Per the captain’s update, they were headed to the bay to get out of the worst of the storm and could have covered that distance in just over an hour at her top speed after his transmission.
  8. Although Edmund Fitzgerald had reported being in difficulty earlier, no distress signals were sent before she sank.  Captain McSorley’s last message to Arthur M. Anderson said, “We are holding our own.”
  9. Her crew of 29 perished, and no bodies were recovered.

What isn’t known is why.

  1.  Clearly the wind caused the huge lake to grow violent.  But McSorley was known as a bad weather pilot having steered through like conditions in these same waters many, many times before.
  2. Rescue efforts began by air and by sea and quickly.  They were in vain.  A few life vests and a few pieces of wood were all that were ever seen floating aimlessly on the surface.  Why so little after only an hour or two had passed?
  3. One theory is that it’s design (low in the middle when loaded) allowed  the waves to crash repeatedly over the top and unsecured hatches ( a rather common practice then) slowly filled with water causing it to sink.
  4. Another theory is that three consecutive waves, commonly called three sisters, in excess of thirty feet each swamped the cargo areas in rapid fashion without allowing the first nor second wave to slide back into the angry sea.  They could have caused the ship to rapidly sink, explaining the lack of a distress signal.  The SS Arthur Anderson, about 14 miles behind, reported two such waves shortly before all communication with the Fitz was lost.
  5. Yet another theory has the ship thrown into nearby shoals causing it to break up.  Subsequent underwater missions have shown no evidence of that type of damage though.
  6. A final theory had the boat structurally effectively snapping in two on the surface from the pressure in the ship’s middle.  Research teams, due to the two pieces only lying 150 apart on the bottom argue against the surface breakup and for the breakup as it hit the bottom.

    The Edmund Fitzgerald’s original bell recovered and now a museum exhibit.
  7. These research “dives” have photographed the ship split nearly in half though supporting theories two or three above.  The bow is sunk and “stands” vertically at the bottom while the stern is at about a 45 degree angle.  These findings support the weight of the ore, the low middle of the ship, and the sudden disappearance.
  8. Numerous investigations have led to numerous safety improvements since then for crew, cargo, ship design, navigation requirements, and storm notification.  Perhaps some good came of a lot of bad.
  9. No one will ever know what actually happened.

While this story pales in comparison to the mega tragedy story of the Titanic, it still fascinates to this day.  How could a veteran crew sailing in familiar lake waters all perish without a prior word of warning?  In Gordon Lightfoot’s ballad he wondered the same and honored those crew members for it.

 

 

The Wreck Of The Edmund Fitzgerald”

The legend lives on from the Chippewa on down
Of the big lake they call Gitche Gumee
The lake, it is said, never gives up her dead
When the skies of November turn gloomy
With a load of iron ore twenty-six thousand tons more
Than the Edmund Fitzgerald weighed empty
[Former version:] That good ship and true was a bone to be chewed
[Latter version:] That good ship and crew was a bone to be chewed
When the gales of November came earlyThe ship was the pride of the American side
Coming back from some mill in Wisconsin
As the big freighters go, it was bigger than most
With a crew and good captain well seasoned
Concluding some terms with a couple of steel firms
When they left fully loaded for Cleveland
Then later that night when the ship’s bell rang
Could it be the north wind they’d been feelin’?The wind in the wires made a tattle-tale sound
When the wave broke over the railing
And every man knew, as the captain did too
‘Twas the witch of November come stealin’
The dawn came late and the breakfast had to wait
When the gales of November came slashin’
When afternoon came it was freezing rain
In the face of a hurricane west windWhen suppertime came, the old cook came on deck
Saying, “Fellas, it’s too rough to feed ya.”
[Former version:] At seven PM a main hatchway caved in
[Latter version:] At seven PM it grew dark, it was then
He said, “Fellas, it’s been good to know ya.”
The captain wired in he had water comin’ in
And the good ship and crew was in peril
And later that night when his lights went out of sight
Came the wreck of the Edmund FitzgeraldDoes anyone know where the love of God goes
When the waves turn the minutes to hours?
The searchers all say they’d have made Whitefish Bay
If they’d put fifteen more miles behind her
They might have split up or they might have capsized
They may have broke deep and took water
And all that remains is the faces and the names
Of the wives and the sons and the daughtersLake Huron rolls, Superior sings
In the rooms of her ice-water mansion
Old Michigan steams like a young man’s dreams
The islands and bays are for sportsmen
And farther below, Lake Ontario
Takes in what Lake Erie can send her
And the iron boats go as the mariners all know
With the gales of November remembered[Former version:] In a musty old hall in Detroit they prayed
[Latter version:] In a rustic old hall in Detroit they prayed
In the Maritime Sailors’ Cathedral
The church bell chimed ’til it rang twenty-nine times
For each man on the Edmund Fitzgerald
The legend lives on from the Chippewa on down
Of the big lake they call Gitche Gumee
Superior, they said, never gives up her dead
When the gales of November come early

 

Stalemate

Posted on by thependulumswings staff

Independent Investment Management designed to protect and grow your wealth.

JIM CARLTON
Managing Director
Chief Investment Officer

Friends

Stocks tried to sell off at the opening this morning, but the bears just couldn’t muster very much enthusiasm. Word that the China trade talks are progressing, and a good earnings release from Walmart were enough to spark modest interest from the bulls and stocks moved into positive territory for the rest of the trading session. Perhaps, the bulls are sensing that things have moved into very overbought territory, leaving both combatants a bit tentative at this point.

For the day, the Dow Jones Industrial Average was up 8 points to close at 25,891. The S&P 500 was up 4 points to finish the day at 2,779. Gold was up $20 to trade at $1,342 per ounce, while oil was up $.53 to trade at $56.12 per barrel WTI.

As oversold as we were on Dec. 24th of last year, is about as overbought as we are right now. We can work off the overbought condition one of two ways (or both actually)- price or time. A little sideways action might be what the doctor ordered for the bulls, to digest some of these early first quarter gains. Of course, the market is going to do what the market is going to do. But, as economic data continues to be mixed and corporate earnings are certainly not going to be as strong as last year, we are beginning to see P/E expansion once again, fueled by dropping interest rates (the 10 Year Treasury Note now yielding 2.64%). Moves like we saw in the 4th quarter of last year, and the first 6 weeks of this year adds to the difficulty of predicting stocks price movements as we move further into 2019. Stay tuned, we’ll be providing the play by play.

Have a nice evening everyone.

Jim

10200 Grogan’s Mill Road, Suite 340
The Woodlands, TX  77380 
(281) 298-2700 Phone
(877) 824-4299 Toll Free
(281) 298-2760 Fax

[email protected]        www.chjwealthmanagement.com

Investment Advisory offered through Carlton, Hofferkamp & Jenks Wealth Management, LLC (“CHJ”).

*Numbers and figures sourced from the following: Bloomberg.com, CNBC.com and Finance.Yahoo.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

CHJ Wealth Management,
10200 Grogan’s Mill Road,
Suite 340
The Woodlands, TX 77380

Stocks Surprise Again

Posted on by thependulumswings staff

Independent Investment Management designed to protect and grow your wealth.

JIM CARLTON
Managing Director
Chief Investment Officer

Friends

Stocks continue to push higher despite a lukewarm earnings season, mixed economic data and the political theater that we see on a daily basis. Stress on those who sold in the 4th quarter of 2018 is starting to build. Have they come back in, and if not will they potentially provide fuel for a further advance as the fear of missing out continues to build?

For the day, the Dow Jones Industrial Average was up 443 points to close at 25,883. The S&P 500 was up 29 points to finish the day at 2,775. Gold was up $10 to trade at $1,324 per ounce, while oil was up $1.34 to trade at $55.75 per barrel WTI.

Interestingly, today’s move did not include the likes of Amazon, Google, Netflix and Apple. Today’s advance was led by industrials and financials, which might indicate that this advance is beginning to broaden out. This has been an amazing first 6 weeks of the year, as stocks try to erase the memory of a disastrous 4th quarter. Let’s see if the bulls can keep the pressure on the beleaguered bears next week.

Have a great weekend everyone.

Jim

10200 Grogan’s Mill Road, Suite 340
The Woodlands, TX  77380 
(281) 298-2700 Phone
(877) 824-4299 Toll Free
(281) 298-2760 Fax

[email protected]        www.chjwealthmanagement.com

Investment Advisory offered through Carlton, Hofferkamp & Jenks Wealth Management, LLC (“CHJ”).

*Numbers and figures sourced from the following: Bloomberg.com, CNBC.com and Finance.Yahoo.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

CHJ Wealth Management,
10200 Grogan’s Mill Road,
Suite 340
The Woodlands, TX 77380

Stocks Resilient in the face of Headlines and Retail Sales

Posted on by thependulumswings staff

Independent Investment Management designed to protect and grow your wealth.

JIM CARLTON
Managing Director
Chief Investment Officer

Friends

The stock market is showing some impressive resilience. The bears delivered a haymaker this morning in the form of a miserable retails sales number, which initially did send stocks lower (more than 250 Dow points), but those losses were erased by midday. As the afternoon wore on and headlines hit that the President was going to sign the spending bill and declare a state emergency, market participants stepped back and stocks drifted lower into the close.

For the day, the Dow Jones Industrial Average was down 103 points to finish the day at 25,439. The S&P 500 was down 7 points to close at 2,745. Gold was up $1 to trade at $1,315 per ounce, while oil was up $.63 to trade at $54.53 per barrel WTI.

Yes, we continue to straddle formidable resistance levels, but the bulls have to be encouraged that a lukewarm corporate earnings season and mixed economic data hasn’t put more pressure on stocks. Headlines move markets, but mostly are forgotten rather quickly. Economic data and corporate earnings are the true weighing apparatus of the markets. Let’s see how the week finishes out tomorrow.

Have a nice evening everyone.

 

Jim

10200 Grogan’s Mill Road, Suite 340
The Woodlands, TX  77380 
(281) 298-2700 Phone
(877) 824-4299 Toll Free
(281) 298-2760 Fax

[email protected]        www.chjwealthmanagement.com

Investment Advisory offered through Carlton, Hofferkamp & Jenks Wealth Management, LLC (“CHJ”).

*Numbers and figures sourced from the following: Bloomberg.com, CNBC.com and Finance.Yahoo.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

CHJ Wealth Management,
10200 Grogan’s Mill Road,
Suite 340
The Woodlands, TX 77380

The Market Likes Deals

Posted on by thependulumswings staff

  Independent Investment Management designed to protect and grow your wealth.
 

 
JIM CARLTON

Managing Director
Chief Investment Officer

 

Friends

As old Monty Hall used to say “let’s make a deal”. A nice rally in stocks today was attributed to reports that a deal on the budget seems to have been reached (but not yet blessed by the President), and that there appears to be progress on a deal with China(of course, those tea leaves are next to impossible to trust). Nevertheless, the markets like deals, and more importantly, the more uncertainty that can be taken out of the situation, the better. Stocks got off to a good start this morning and were able to add to those gains as the trading session wore on.

By the close, the Dow Jones Industrial Average was up 372 points to finish the day at 25,425. The S&P 500 was up 34 points to close at 2,744. Gold was up $2 to trade at $1,314 per ounce, while oil was up $.70 to trade at $53.11 per barrel WTI.

Again, stocks are bumping up against resistance, and both the bulls and the bears seem to be a bit on edge. If the bulls can push through, the bears will be left to play defense, which could actually push stocks even higher. On the other hand, if the bulls fail, the bears can claim the resistance held again and that a retest of December’s lows is still in the cards. Amazingly, stocks lost nearly 20% in less than 90 days last quarter, and have recaptured about two thirds of that in less than 45 days so far this year. Even the most ardent bulls have to be surprised by the power of this rally given the circumstances. Let’s see if the government deal gets done this week and if we can get that uncertainly behind us.

Have a nice evening everyone.

Jim
10200 Grogan’s Mill Road, Suite 340
The Woodlands, TX  77380 

(281) 298-2700 Phone

(877) 824-4299 Toll Free

(281) 298-2760 Fax

Investment Advisory offered through Carlton, Hofferkamp & Jenks Wealth Management, LLC (“CHJ”).

 

 *Numbers and figures sourced from the following: Bloomberg.com, CNBC.com and Finance.Yahoo.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
CHJ Wealth Management, 10200 Grogan’s Mill Road, Suite 340, The Woodlands, TX 77380