Yes, anytime we can expect explosive move upside in the global equity market….

The failure of Trump and reform movements in Europe are the catalyst to send the stock market to record highs once again as people lose confidence in government completely and we then turn to just look how to park money.

Money pours into equities, not because of earnings, but because capital is fleeing from government and banks (interest rate reduction) and it just needs a place to park.
Keep in mind that Trump WILL FAIL! This much is inevitable. The trend is against him and you cannot fight the trend. People had such high hopes for Obama that he would live up to his promises and we would really see “Change We Can Believe In.”
When everything he did was the same as Bush, that destroyed the confidence in the two-party system and set the stage for Trump as we were forecasting. He became effectively a third-party candidate with the Republican Party.
Now, when he fails to reverse the global trend, where will people turn? Once you raise the hopes for change and Trump cannot deliver, all bets are off moving forward. That is when the stock market starts to rise for reasons that will confuse most. This is not the “Trump Rally” but the collapse in public confidence rally.
This is the Year from Political Hell on a global scale. This is all about capital flows and Trump is dead wrong on trade, the dollar, and whatever he does with the taxes, he better do it fast, for when the politics shifts again, they will only rise because governments; federal, state, and local, are broke and that will not change. Political change is sweeping Europe, Australia, and even in Asia.
At the end of the day, the next level of resistance for DOW is still in the 23000 level. After that, we cross the threshold into a Phase Transition. That is when everything begins to get truly confusing and crazy.

– Sajal Goyal


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