Although Treasury yields are likely to hold below the cited levels in coming weeks, which would normally be supportive of the stock market, the issue of protectionism has the potential to create enough concern, confusion, and fear to cause the S&P 500 to not only drop back to the low on February 9 but below it.
The S&P 500 has rallied from the March 2009 low of 667 to a high of 2567 on December 4. Roughly 60% of the increase is due to the rise in corporate earnings from economic growth and financial engineering from stock buybacks.
S&P 500--Gee, who would have thought that taking off thousands of job killing economy killing regulations and lowering taxes on the middle class (opposite of last 8 years) would actually make stock indices scream higher.
"January, for the purposes of this letter, covers 1/03 - 2/05. This month looks very interesting with 4 potential Planetary Polarity Points. These are planetary events that have the potential to invert the current polarity of the planetary energy.
The rally in the stock market since the election and the hope that Trump's elixir of tax cuts, rollback of regulatory burdens enacted since 2008, and fiscal stimulus, are merely a preamble to higher stock prices and has engendered a surge in optimism.