7:46 am PST. I am watching HYG, the high-yield-corporate bond etf for clues as to what this market is going to do. Personally, I think HYG is topping, because it is negatively diverging, but markets can always still continue to go up. Just watching it. We did close yesterday above the prints, which was a bullish sign for this morning. But with all the bond prints yesterday, I somewhat negated the importance of these prints in my mind.

Now, we are below the prints from yesterday. It could be an important clue.

Musings on the dollar – I think a weaker dollar would be good for the U.S. economy and for products made here. That is what Trump wants: American made, American bought. How is he going to accomplish that when the dollar is so expensive? Companies are going to repatriate all their money back to the U.S., build factories here, but then cannot sell anything to the rest of the world. I think a really strong Euro would actually cause the demise of Europe, in addition to corrupt politics. Europe would not be able to sell any of their products with a really expensive Euro.