Politics

Boom & Bust: The Trump Surge Is Setting Up A Slump

78D394D3-90C4-4009-A136-326794E3E295@hsd1.fl.comcast.net.As of yesterday, the Dow has set record close for 10 straight days in a row, which represents the longest winning streak in the index since Ronald Reagan occupied the White House. If that trend extends three more days, it will be the longest ever.

Since the day after the presidential election in which iT was clear that Donald Trump’s aggressive protectionist agenda would rule the White House, Dow futures have catapulted 20%.

But amid all the good news in the markets there are some telltale signs that portend some short-term threats, signs that are obscured by all the hubbub in the headlines.

First, as I’ve pointed out before, what goes up must come down. While I’m sticking with my prediction that the Dow will smash through 30,000 around or before the mid-term elections, the road to that record will be a bumpy one. And the seeds being sewn for those bumps are increasingly become clear.

Despite the 10-day record in the Dow, the fact that most of the gains have been seen in ETFs and mutual funds has come at the expense of other sectors like energy and small-cap stocks. So gains in the market have been largely concentrated in the industrial and large-cap stocks.

Historically when we see major movement in prices, whether up or down, that are locally concentrated in a few indices or sectors, what we nearly always see eventually is a correction.

On the one hand, if prices become too low then investors see stocks as undervalued which sets off a buying rush. On the other hand, if prices become too high too quickly, investors recognize at some point that stocks are overvalued and begin selling.

trumpslump

With the Dow hitting multiple records in a short amount of time — based almost entirely on the news cycle and on President Trump’s pledges for protectionism — we’re almost certainly setting up a massive sell-off within the next few weeks (if not days) in which investors will seek to capture profits.

This presents a perfect opportunity by either shorting select stocks or buying certain put options and profiting on the correction. The only question is by what and when the sell-off will be triggered.

I’ve been getting email from many readers showing interest in that and other topics and welcome all such comments, questions & requests. As I get a sense of what you would like to see, I can work it into future columns. So what would YOU like to see… or learn… or ask? Email me at: Mike@MikeGaliga.com

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Politics

Trump at CPAC: I’m ‘Representing Your Country’, Not the ‘Globe’

President Trump returned to the stage in DC where one year ago he was the lightning rod who still had no chance of winning the White House.

But today he addressed a packed house of conservatives in which he continued his attack on the leftist media and vowed to continue the fight to put America back in our hands.

Here’s more from Breitbart

President Donald Trump returned to CPAC on Friday, receiving a rock star welcome from the packed ballroom.
He kicked off the speech defending his statement on Twitter that the media was the “enemy of the people,” vowing to fight their “fake news” stories.

“A few days ago I called the fake news ‘the enemy of the people,’ and they are. They are the enemy of the people,” he said, criticizing their “dishonest coverage” of his administration.

Trump admitted that the media was very upset by his repeated criticisms, but that he would continue to do so, citing the First Amendment.

“They get upset, they say we can’t criticize their dishonest coverage because of the first amendment. They always bring up the First Amendment,” he said. “I love the First Amendment. Nobody loves it better than me.”

Trump traveled to the conference center in Maryland aboard Marine One, returning to the CPAC conference where he made his first big politically themed speeches. Supporters lined up hours early to get in the conference hall, but had to go through tight security to enter the building.

During his speech, the president vowed to keep his campaign promises, specifically a repeal and replace of Obamacare, building the Keystone and Dakota pipelines, building a wall on the southern border, restoring military funding.

“We have to, to turn things around. The era of empty talk is over,” he said. “It’s over. Now is the time for action.”

Trump also promised to restore the greatness of the American economy and bring back manufacturing jobs to the country.

“The GOP, from now on, will be the party of the American worker,” he said.

Trump also sounded an anti-globalist message promising to focus his administration on the United States first.

“There is no such thing as a global anthem, a global currency, or a global flag,” he said. “I’m not representing the globe. I’m representing your country.”

Although he was interrupted by a few protestors, his supporters cheered wildly and shouted USA! during his speech.

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International, Politics

Shadow President: McCain Makes Secret Trip to Syria

John McCain has staked his claim as antagonist-in-chief for the Trump administration in the first 30 days of the presidency with routine criticism of the White House on numerous policies.

And now he’s upping the ante with clandestine travel to a war zone on a diplomatic mission coordinated by the military and without executive sanction.

This is an unprecedented, quite foreboding move.

Here’s more from Fox News

Sen. John McCain made a secret trip to northern Syria to visit U.S. military officials and Kurdish fighters and to discuss the campaign for defeating the Islamic State, his office said Wednesday.

McCain, R-Ariz., made the visit to the war-torn country as U.S.-coalition forces prepare for a major battled to oust militants from ISIS’ de facto capital of Raqqa. A statement from the senator’s office did not give the dates of his travel, saying only that he made the visit last week.

“Senator McCain’s visit was a valuable opportunity to assess dynamic conditions on the ground in Syria and Iraq,” the statement reads. It says the president “has rightly ordered a review of U.S. strategy and plans to defeat” the Islamic State group and McCain looks forward to working with the administration and military leaders “to optimize our approach.”

Officials told The Wall Street Journal that the visit was arranged with help from the U.S. military. It comes as the Trump administration debates plans for an increased military campaign against ISIS. President Trump had previously asked the U.S. military to present him with a new plan to destroy ISIS. The report is supposed to be finished by the end of the month.

U.S. officials familiar with the visit told the Journal that McCain traveled to Kobani, which sits along the Syria-Turkey border and has been controlled by Kurdish forces since 2012.

McCain, the chairman of the Senate Armed Services Committee and one of Trump’s biggest critics, recently declared Trump’s administration was in disarray and expressed concern over how national security decisions were being handled.

During a speech Friday at the Munich Security Conference, McCain delivered a withering critique of Trump’s worldview as he lamented a shift in the U.S. and Europe away from the “universal values” that forged the Western alliance 70 years ago.

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Politics

Dem. Maxine Waters Does It Again: Trump Cabinet ‘Scumbags’

While Democrats in Congress mull invoking the 25th Amendment to oust President Trump due to alleged mental instability, Maxine Waters continues to demonstrate what real mental instability looks like in her uncontrollable foaming at the mouth over Trump and his administration.

Now his cabinet is apparently made up of ‘scumbags’.

Decorum and diplomacy anyone?

Here’s more from Gateway Pundit

Far left Rep. Maxine Waters (D-CA) has taken on the role of spokesperson for the Democrat Party since the November election.

During an appearance on MSNBC’s All in with Chris Hayes, Democrat Maxine Waters read off a list of people connected to the Trump team who also have connections to Russia and the oil and gas industry.

Waters then went on to call the Trump administration a “bunch of scumbags.”

Maxine Waters: I just think the American people need to know what is going on. This is a bunch of scumbags. That’s what they are. They’re all organized around making money.

 

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Media, Politics

Breaking: Milo Resigns from Breitbart News

In a weird turn of events Milo Yiannopoulos announced late yesterday that he has resigned from his position as Editor of Breitbart news.

The subject of recent riots at Berkeley University and protests on other campuses, Milo became the object of conservative civil war over the last week after making comments condoning sexual relationships between adult men and underage boys.

Now the left is celebrating.

Here’s more from Breitbart

Having thus far lost his speaking gig and his book deal, Milo Yiannopoulos has now resigned from his position as an editor at Breitbart News in the wake of the controversy over his comments condoning sexual relationships between adult men and underage boys.

“Breitbart News has stood by me when others caved,” said Yiannopoulos. “They have allowed me to carry conservative and libertarian ideas to communities that would otherwise never have heard them. They have been a significant factor in my success. I’m grateful for that freedom and for the friendships I forged there.”

Milo continued: “I would be wrong to allow my poor choice of words to detract from my colleagues’ important reporting, so today I am resigning from Breitbart, effective immediately. This decision is mine alone.”

Yiannopoulos added: “When your friends have done right by you, you do right by them. For me, now, that means stepping aside so my colleagues at Breitbart can get back to the great work they do.”

Watch the video:

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International, Politics

Breaking: Congress to Investigate Arms Sale to Kenya on Obama’s Last Day

We’d all love nothing more than to forget Barack Obama ever crossed the threshold into the White House. But his legacy of ‘fundamentally transforming America’ keeps rearing its ugly head.

To wit, today it was revealed that Congress is beginning a probe into a suspicious sale of arms to Kenya to the tune of nearly half a billion dollars on Obama’s last day in office.

Here’s more from Breitbart

A group of lawmakers is planning to request a congressional investigation of a $418 million U.S. weapons sale to Kenya approved by the Obama administration on its last day in office.

The sale, approved by the State Department and privately notified to Congress on January 19, would allow Kenya to buy 14 weaponized crop-duster-like planes — including two trainer planes and services, for missions against terrorist group al-Shabaab.

The deal was publicly announced the Monday after Trump’s inauguration.

A handful of lawmakers, led by Rep. Ted Budd (R-NC), are questioning why the contract to produce the planes was awarded to major defense firm L3 Technologies — which has never produced such a plane — while a smaller, disabled veteran-owned company in North Carolina that already make those planes at a lower cost was not considered.

The Mooresville, N.C. company, IOMAX USA Inc., costed out 14 planes at $237 million dollars, according to a Budd aide.

“It looks like politics,” Budd said in a phone interview with Breitbart News on Monday. “Why are they sending it to someone that’s produced zero, for twice the price? This is inappropriate.”

Later this week, Budd and several other GOP congressmen are planning to request the non-partisan investigation.

It is not just Republicans puzzled by the matter. Georgia Democrat Sanford Bishop will join Republicans in signing a letter being sent to the Kenyan ambassador to the U.S. on Tuesday.

The letter, obtained first by Breitbart News, says, “We believe Kenya would benefit by exploring its options in regard to this acquisition.”

“We ask that the Government of Kenya take these facts, in particular the prospect of an ongoing congressional investigation of this sale, under consideration as it decides whether or not to proceed with this arms purchase,” says the letter.

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Politics

Feds Establish Support Program for Victims of Criminal Aliens

President Trump’s Department of Homeland Security is on a roll this week in turning back the tide of criminal aliens in the U.S.

After the announcement of the hiring of 10K new ICE agents, DHS Secretary John Kelly announced a new effort to support victims of crime at the hands of illegal aliens called VOICE.

Here’s more from Breitbart

Homeland Security (DHS) Secretary John F. Kelly ordered the director of U.S. Immigration and Customs Enforcement (ICE) to create a program to assist the victims of crimes committed by illegal aliens. The program creates a liaison and authorizes the disclosure of suspect immigration statuses and other pertinent data.
Secretary Kelly ordered the creation of the Victims of Immigration Crime Engagement (VOICE) Office to help reverse policies of the previous administration that kept certain information about criminal aliens the victims of their crimes.

“Criminal aliens routinely victimize Americans and other legal residents,” Kelly wrote in a six-page memo obtained by Breitbart Texas. “Often, these victims are not provided adequate information about the offender, the offender’s immigration status, or any enforcement action taken by ICE against the offender.”

I am establishing the [VOICE] Office within the Office of the Director of ICE, which will create a programmatic liaison between ICE and the known victims of crimes committed by removable aliens,” the secretary explained. “The liaison will facilitate engagement with the victims and their families to ensure, to the extent permitted by law, that they are provided information about the offender, including the offender’s immigration status and custody status, and that their questions and concerns regarding immigration enforcement efforts are addressed.”

Kelly ordered the acting ICE director to immediately reallocate any and all resources that were previously allocated to advocate on behalf of illegal aliens to now be used to support VOICE. He ordered the immediate termination of any outreach or advocacy services to illegal aliens.

The memo supporting President Donald Trump’s “Enhancing Public Safety in the Interior of the United States” Executive Order also included the authorization to hire an additional 10,000 ICE agents and enforcement officers to help in the massive task of rounding up criminal aliens before they can commit further crimes, Breitbart Texas reported. The 680 illegal aliens rounded up in the latest targeted enforcement operation carried out earlier this month represents a tiny fraction of the criminal aliens present in the U.S., according to DHS estimates.

A December study by the Center for Immigration Studies estimated there are 820,000 criminal illegal aliens in the U.S. not deported by the Obama Administration. Courts had convicted many of these aliens for crimes including murder, rape, drug offenses, other crimes, or who had final orders of removal from an immigration judge that was not enforced, Breitbart News reported.

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Politics

McCain: Trump’s Attacks on Press Are ‘How Dictators Get Started’

Sen. John McCain promised to play nice with the Trump administration.

And all was well until he traveled to Germany on a diplomatic tour where he promptly criticized his own president to the German people.

What’s more, he strongly implied that Trump is on his way to becoming a dictator.

Here’s more from Breitbart

Sunday  on NBC’s “Meet The Press,” while discussing President Donald Trump’s attacks on the press, Sen. John McCain (R-AZ) said that was “how dictators get started.”

McCain said, “I hate the press. I hate you especially. But the fact is we need you. We need a free press. We must have it. It’s vital. If you want to preserve – I’m very serious now – if you want to preserve democracy as we know it, you have to have a free and many times adversarial press. And without it, I am afraid that we would lose so much of our individual liberties over time. That’s how dictators get started.”

He added, “They get started by suppressing free press. In other words, a consolidation of power when you look at history, the first thing that dictators do is shut down the press. And I’m not saying that President Trump is trying to be a dictator. I’m just saying we need to learn the lessons of history.”

Here’s the video:

 

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Politics

First Lady Melania Kicks Off Trump’s Florida Rally With Lord’s Prayer

Mainstream media liberals are apoplectic after Trump’s huge rally in Florida opened up with Melania reciting the Lord’s Prayer.

The only thing worse for liberals than a president lining his administration with conservative stalwarts is a president whose White House is explicitly Judeo-Christian.

Here’s more from Newsmax

First lady Melania Trump opened her husband’s rally in Florida on Saturday with the Lord’s Prayer and a promise to pursue initiatives for “women and children around the world.”

She also said she would “always stay true to myself, and be truthful to you.”

Melania, who lives in New York away from her husband as their son Barron finishes out the school year, has been by the president’s side for many events throughout his first month in Washington.

She was in Washington, D.C., last week for the first time as a host to help President Donald Trump welcome Israeli Prime Minister Benjamin Netanyahu and was also in Palm Beach, Florida, when Trump hosted Japanese Prime Minister Shinzo Abe the week before.

“I’m committed to creating and supporting initiatives dear to my heart, which will have impact on women and children all around the world,” she said to a cheering crowd.

She also said her husband “is creating a country of great safety and prosperity.”

Franklin Graham, an evangelist and missionary, praised Melania for opening with the Lord’s Prayer.

“Has this ever happened in American politics before?” Graham wrote on his Facebook page.

“In Melbourne, Florida, today, First Lady Melania Trump read the Lord’s Prayer before introducing her husband, President Donald J. Trump. Three cheers for her! And may God bless our country!”

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International, Politics

John Bolton Emerging as Frontrunner to Replace Flynn

After National Security Adviser Michael Flynn resigned last week, the question on everyone’s mind is who President Trump would choose as his replacement.

Now insiders say former Bush administration Ambassador to the United Nations John Bolton is on the top of the list.

Bolton is known anti-UN hardliner who could shake things up very quickly.

Here’s more from Newsmax

Support was building Saturday for former UN Ambassador John Bolton to fill the White House national security adviser spot left vacant by Michael Flynn’s resignation.

According to The Washington Free Beacon, senior White House officials and members of the National Security Council are pushing for Bolton, including senior administration officials loyal to Flynn who were upset at his exit.

“There’s a strong inclination in the NSC towards the kind of experienced leadership Bolton would represent,” one unnamed official told the Free Beacon. “He knows the ins and outs of D.C. but he’s not an establishment, Never Trump type.”

Another unnamed foreign policy source told the outlet that Bolton, as a senior figure in the George W. Bush administration, brings a deep knowledge of the White House that would give the new Trump administration added credibility.

“The one thing that makes Bolton more qualified than anyone else for the Trump era is that he has a veteran genius-level understanding of the organizational structure of our nation’s diplomatic and intelligence apparatus,” that source told the Free Beacon.

Foreign policy writer Lauren Rosen reported that an unnamed source said Trump told deputy national security adviser K.T. McFarland to “pick her new boss” – and she named Bolton.

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