President Trump!
Just think about what that will mean for America. Then keep on thinking about it because we are only one Hillary scandal away from a Trump Presidency now that Ted Cruz has quit the race, leaving the GOP no choice but to rally behind The Donald at their conventon on July 18th. Then it's just 4 months until the November 8th election when we can look forward to Trumps agenda, which includes (out of 76 campaign promises so far):
- 1. Build a wall along the southern border that's taller than the arenas where Trump holds his rallies, taller than any ladder and one foot taller than the Great Wall of China. This "artistically beautiful" wall will be constructed out of hardened concrete, rebar and steel, and it will be "the greatest wall that you've ever seen" — so great that the nation will likely one day name it "The Trump Wall."
- 4. Get rid of Common Core because it's "a disaster" and a "very bad thing." Trump says he wants to give local school districts more control and might even eliminate the Department of Education.
- 6. Get rid of Obamacare and replace it with something "terrific" that is "so much better, so much better, so much better."
- 10. Defund Planned Parenthood.
- 18. Prosecute Hillary Clinton for her use of a private e-mail server while serving as secretary of state.
- 23. Strengthen the military so that it's "so big and so strong and so great" that "nobody's going to mess with us."
- 27. Target and kill the relatives of terrorists.
- 46. Put billionaire hedge fund manager Carl Icahn in charge of trade negotiations with China and Japan, and pick an ambassador to Japan who is "a killer," unlike the current ambassador, Caroline Kennedy.
- 54. Simplify the U.S. tax code and reduce the number of tax brackets from seven to four. The highest earners would pay a 25-percent tax. The corporate tax rate would fall to 15 percent. Eliminate the "marriage penalty" for taxpayers and get rid of the alternate minimum tax.54. Simplify the U.S. tax code and reduce the number of tax brackets from seven to four. The highest earners would pay a 25-percent tax. The corporate tax rate would fall to 15 percent. Eliminate the "marriage penalty" for taxpayers and get rid of the alternate minimum tax.
- 55. No longer charge income tax to single individuals earning less than $25,000 per year or couples earning less than $50,000. These people will, however, be required to file a one-page form with the Internal Revenue Service that states: "I win."
- 68. Deport the almost 11 million immigrants illegally living in the United States.
- 76. Start winning again. "We're going to win so much — win after win after win — that you're going to be begging me: 'Please, Mr. President, let us lose once or twice. We can't stand it any more.' And I'm going to say: 'No way. We're going to keep winning. We're never going to lose. We're never, ever going to lose."
I know I'm excited and I hope you are too and Mr. Trump can't take over too soon as our Q1 Productivity is down 1% and clearly we can blame the Mexicans for that – or Syrians, or Iran, or China – well we can certainly blame someone and call it a win somehow, right? Along with Productivity falling, Unit Labor Costs blasted 4.4% higher, blowing past 3.3% expectations and we're certainly seeing the margin squeeze this is causing in the weak earnings reports we've been seeing.
I'm going to be on TV this evening talking about Japan's unsustainable debt as well as our trade ideas on Apple (AAPL), which is a buy at $95 and Baker Hughes (BHI), which is a buy at $45.50. We'll talk about them during our Live Webinar this afternoon at 1pm and perhaps we can pick up a bullish trade on the Nikkei (/NKD) Futures this morning as we retest the 15,900 line (with very tight stops below).
We're just playing for a bounce but even a 50-point bounce here will pay $250 per contract and the Dollar just punched over 93, which is good for the Nikkei and it's nice to find a bullish play to lock in our bearish gains as the market once again looks to record a poor open.
We have a PMI report at 9:45 and ISM Services at 10 along with Factory Orders and, at this point, expectations are low all around so we'll be looking for a bounce at Dow (/YM) 17,550, S&P (/ES) 2,040, Nasdaq 4,300 (/NQ) and Russell (/TF) 1,110 along with /NKD 15,900 but if any 2 are below (including whatever you are playing) – GET OUT! Anything below 17,600 on the Dow is the 3rd failure of our Must Hold line and that is NOT GOOD and the NYSE and the Russell are below their -5% lines now so we're certainly trending lower overall – we're just looking for bounces off the recent drop, 15 S&P points at the most 2,055 and very bad if we fail to take that back.
We'll see how the data comes in and, until then, we are loving our hedges – as well as our CASH!
