Market Consolidating

The major indexes hit intraday records before closing lower as earnings season kicked into full gear, with JPMorgan Chase and Citigroup reporting results.

It’s been almost a year without a 3% drawdown in the S&P 500, 2nd longest run in history. 10 more days for the record.  Some would take the other side of that trade and get really short.  I am sure some are, but if they are wrong about a directional move lower, than that only adds fuel for the bulls.

The bulls have a huge edge here because no one in their right mind wants to be on the wrong side of tax reform if it happens.  As I said the other day, even a  modest tax cut across the board could add $10 to S&P earnings and don’t forget the 3 trillion that will get repatriated.  How many stock buybacks do you think we will see with all that loot?  Capital spending and hiring are all positive by-products of all of this.

Many of you got stopped on IMGN which has been acting poorly since they announced their secondary. I have some left and as you can see it is on support.  If it doesn’t bounce Im out.

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