Market swan dive continues Thursday on low pre-holiday volume
WASHINGTON. Hit hard Wednesday by a 180-degree negative reversal, demoralized stock averages are taking it on the proverbial chin in thin Thursday morning trading action. The summer market swan dive persists today even after the S&P 500 and the NASDAQ opened on the plus side and stayed there a bit.
Alas, both averaged decided to join the persistently weak Dow around 10 a.m. ET, and as of 10:40 all three were off fractionally. We’d expect today’s major stock averages to recover a bit and then get hit again, concluding the day with another full market swan dive. Or not. You never really know these days.
Markets are likely still reeling from an uncommonly YUGE news day Wednesday, during which the Supremes dealt YUGE blows to the anti-Trump #Resistance on three major fronts.
Front #1: SCOTUS ruled 5-4 in the Janus v. AFSCME case, with the conservative majority doing a Scott Walker. They effectively killed AFSCME’s longstanding ability to force nonunion local, state and Federal government workers to pay mandatory “fees” (i.e., minimal union dues) to the union anyway. Now, that’s a no-no for public sector unions.
This is great news on a variety of fronts, and will likely, in a short period of time, cripple public sector unions’ ability to “buy” pliant Democrat politicians who continue to rip-off public sector employers – us – to fund absurdly rich pension plans and early retirement schemes far better than the average American worker will ever receive.
Even better, the ruling will largely eliminate the vast money pools currently dispensed almost exclusively to Democrat candidates who then vote the way they’re told – something that has damaged American workers and the American economy beyond measure for decades.
Democrats, particularly those controlling that party’s now-dominant Marxist wing, are apoplectic. But they went stark-raving mad when the second shoe dropped.
Front #2: Supreme Court Justice Anthony Kennedy, a nominal conservative but often a swing vote in 5-4 decisions, announced he’s stepping down from the court effective July 31, 2018. For the left, that means the hated President Trump will now get a chance to appoint – God forbid – a second Neil Gorsuch to the bench, assuring the absolute end, at least for now, of the rampant Constitutional revisionism that has long dominated the Supreme Court’s reliably Marxist contingent.
The left continues to hyperventilate over this judicial massacre, which could mean an end to the left’s ability to overturn Constitutional law by judicial fiat, thus sparing Congressional leftists the electoral consequences of actually voting for this unpopular stuff themselves.
Front #3: Although the capricious, left-wing, #Resistance-led judicial nonsense that kept halting President Trump’s ban on immigration from unfriendly countries went on vastly longer than it should have, the Supremes overturned an out-of-line Hawaiian judge’s ruling against the third version of that travel ban.
Now, the travel ban finally goes into effect, with an additional warning from Justice Thomas that capricious legislating from the lower-bench judicial cohort would no longer be tolerated. I’d expect some of these clowns to continue to defy this as best they can. But Trump’s immigration order was and is clearly one of the President’s Constitutional powers. That finally became clear Wednesday to America’s cadre of know-nothing, #NeverTrump fake judges.
Every one of yesterday’s happenings worked the extreme left up into a frenzy. This leads, predictably to numerous death threats against Republican judges, legislators and their families. That’s why we typically refer to these leftist clowns and agitators as Stalinists.
All this has an emotional spillover effect on Wall Street. Coupled wiih the media’s ridiculous and persistent “trade war” and “recession” scare headlines, makes for one nasty trading week.
Add to this the fact that many traders and investors are already packing up and heading to the beach for an extraordinarily long July 4 holiday “weekend,” and you have a thinly traded market dominated by deliberate political selling and just plain old panic selling on ever-decreasing volume.
That’s been killing our own portfolios this week. But the selling is getting completely overdone. So we’re holding on until this thing bottoms, at which point we should see a fairly sharp snapback rally.
Smooth sailing ahead, or another market swan dive next week?
It’s too bad, however, that the emotional, violent anti-American and anti-Trump crybabies that dominate politics, headlines and media coverage should be so successful in obscuring the massive turnaround Trump has engineered in the U.S. economy in just a year and a half of his presidency.
The administration’s accomplishments will become more obvious as the year advances toward November’s important midterm elections. It’s also becoming more obvious that the Democrats have nothing to offer this fall save for promising higher taxes, free stuff to those who don’t work or pay taxes, and the usual threats of violence toward anyone who won’t shut up when it comes to telling the truth about who these people are.
We’re not going to do much in the portfolios until after the 4th. Just too much nonsense out there that’s putting undue influence on America’s markets. As we put the final touches on this piece, markets are trying to recover. Again. But with volume low and Negative Nellies in charge, that pre-holiday-trade war- #Resistance market swan dive may resume again at any time.