03/24/17

ULTIMATLEY IT WILL BE ABOUT EARNINGS AND INTREST RATES

By: Kent Engelke | Capitol Securities

Healthcare has become the litmus test as to whether Trump could legislate his agenda. Because of technology based trading where variables and responses to these variables are preprogrammed, market reaction may be greater than it otherwise should.

Unfortunately this is the environment that has evolved; an environment that I believe is on the cusp of change given the breakdown of cross correlated trading models that have worked almost flawlessly for almost 10-12 years.

Some believe these models could/would evolve into SkyNet, the all-powerful computer system that John Connor had to destroy to save the world.

I do not share this view for the simplistic reason that all trading models ultimately fail via their own demise. The trade becomes “overcrowded” with all replicating the same strategy. Change is the only constant and over time markets will respond accordingly to the macroeconomic and geopolitical environment as well as earnings and interest rates, the appropriate driver of equity and bond prices.

Commenting about yesterday’s market action, all markets were relatively unchanged even as the healthcare vote was delayed for at least a day.

Last night the foreign markets were mixed. London was down 0.10%, Paris was down 0.41% and Frankfurt was down 0.17%. China was up 0.64%, Japan was up 0.93% and Hang Sang was up 0.13%.

The Dow should open nervously quiet ahead of the potential healthcare vote. The 10-year is unchanged at 2.42%.

03/24/17

Author, filmmaker warns of biggest US threat is those who threaten the Constitution

By: Bryant Maddrick | Fox 28

The terror attack in London has some American cities on alert, watching activity on major bridges.

Author and filmmaker Trevor Loudon says the biggest threat here is not ISIS or Al Qaida. It’s what happening right here on American soil

“You cannot rely on the government in its present state to effectively guard your internal security to keep you safe,” says Loudon.

That’s the message the author and filmmaker is making in his book and documentary, both titled “The Enemies Within.”

“What we’re talking about are the internal enemies of the Constitution. We contend these are actually more dangerous.”

Loudon argues groups like the Muslim Brotherhood have influenced members of Congress. The New Zealand native has been traveling the country talking to people about what he sees as a problem and the solution to it.

“Have the Muslim brotherhood designated officially by the state department as a terrorist organization. Just as Hamas is, just as Al Qaida is.”

Loudon makes his point on the same day as a deadly terror attack in London that left four dead.

“There are Islamic cells all over Europe, all over the Middle East, and obviously here in America who can strike at a moment’s notice.”

The New Zealand native says it’s another reminder of the world we live in.

“If we don’t do something about it, it’s just going to be a continual pattern of American and Europeans being slaughtered in their own homes, in their own cities.”

Loudon explains his message is not to appeal to partisan politics. Instead, it’s to appeal to American’s love for the constitution.

“They do want their American identity. They know the country’s based on the Constitution. They know it’s based on a free enterprise system and strong national defense. They know America has been a world leader and most Americans will buy into that.”

Loudon will take his message to the Cincinnati area before going to Canada.