Can We Still Play to Win?

Cautious - Not Indifferent 
It was a lackluster session, and investors appear to be somewhat indifferent. I would argue, however, that markets grapple for outside impetus.

Meanwhile, individual investors are retreating to a more cautious stance, resulting in 34% saying that they are bearish. This is the first time since the election that bearishness has been above 30%. 

This isn’t a death knell for the rally; on the contrary, I think sentiment could be a coiled spring- but it needs to be sprung.  This is getting harder with Washington, D.C.’s rhetoric and disarray commanding all the oxygen.

Missing in all of this is continued good news, with hard and soft data, underscoring the American public and businesses that have begun to react positively to the Trump presidency.

Monday, we got soft data from Gallup showing consumers spent an average of $88.00 a day, down $17.00 from December; the highest number since January 2008.

American Spending

Goldman Sachs (GS) and others have been jawboning the market lower, which could be the biggest buy signal of them all.  I understand those distractions out of Washington, D.C., including the non-stop in-fighting is hurting public confidence. However, economic success is infectious. 

We will get clarity on the Trump’s travel moratorium, although more experts are now predicting that it will work its way up to the Supreme Court.

As for the Trump rally - it’s only been two weeks, and it’s been hectic but determined.