Pakistan Army Chief Asim Munir called off his trip to Iran as Iran supreme leader ordered not to let its enriched uranium leave the country.  Pakistan Army Chief Asim Munir is acting as a key go-between in tense contacts between the US and Iran, but reports say Munir will visit Tehran only if both sides first settle a final framework formula. The condition-based trip highlights how fragile the talks remain

 

Exclusive: Supreme Leader says enriched uranium must stay in Iran, Iranian sources say | Reuters

 

It looks without military actions Iran won't give US the enriched uranium as US demands .................................. 

The parabolic phase of the greatest bull market in history is still well underway. Bears were thrown a rare bone but failed to do much with it as they were swiftly rug pulled. The recent healthy 3-day, 2-3% correction ended as quickly as it began, doing its job perfectly: resolving overbought technicals, flushing out weak hands, and getting plenty of traders beared up. Its amazing how many bears crawled out of the woodwork to call for tops, crashes, omens, and doom and gloom scenarios over a routine, shallow pullback. Folks were aggressively shorting, buying puts, and writing calls, all in hopes of nailing THE TOP. I hate to break it to them, but resisting the greatest bull market in history is a futile endeavor.

Ive mentioned before there will be minor dips along the way, but the underlying bid to this market is a force to be reckoned with. All dips will be bought. I would only be somewhat concerned if we see a correction greater than 5%, but the likelihood of that happening anytime soon is extremely slim.

Bears have been warned: New highs are imminent! The trend has been up, continues to be up, and remains up until proven otherwise.

Watch the sky, 😄

The parabolic phase of the greatest bull market in history is still well underway. Bears were thrown a rare bone but failed to do much with it as they were swiftly rug pulled. The recent healthy 3-day, 2-3% correction ended as quickly as it began, doing its job perfectly: resolving overbought technicals, flushing out weak hands, and getting plenty of traders beared up. Its amazing how many bears crawled out of the woodwork to call for tops, crashes, omens, and doom and gloom scenarios over a routine, shallow pullback. Folks were aggressively shorting, buying puts, and writing calls, all in hopes of nailing THE TOP. I hate to break it to them, but resisting the greatest bull market in history is a futile endeavor.

Ive mentioned before there will be minor dips along the way, but the underlying bid to this market is a force to be reckoned with. All dips will be bought. I would only be somewhat concerned if we see a correction greater than 5%, but the likelihood of that happening anytime soon is extremely slim.

Bears have been warned: New highs are imminent! The trend has been up, continues to be up, and remains up until proven otherwise.

Watch the sky, 😄

paint job they wouldn't have ven got a doji. Rally is losing conviction. (JMHO)

According to my turn probability summation system, the day with the highest likelihood of seeing a turn in or acceleration of the current trend in the DJIA over the next week or so is Tuesday after next, May 26th (US stock market closed on Monday May 25th).  The next highest system reading is this coming Friday May 22nd with the next lower reading on Wednesday May 20th also high enough to merit being labelled a turn window.  

 

Last week my quick and dirty calculations pointed to this past Friday May 15th as a turn window and on a daily basis it was with a 500+ point DJIA drop from the previous close peak as shown in the marketwatch.com plot below in red, but the actual turn occurred about mid-day Thursday.  Of course Friday could turn out to be a low if there's a rally on Monday due to some POTUS stock pumping tweet.

 

 

The AD line divergence that I pointed out in last week's post is still there and getting worse.   In the plot below I've added the AD volume line showing it is also diverging adding fuel to the fire.

 

 

Inflation in anything touched by energy or fertilizer seems to be ripping.  The long bond traders have finally woken up to the problem with a break above 5% this past Friday just adding to the market's woes.  I got a taste of it myself yesterday when I priced an international flight in the same week, on the same airline and following the same route as last year only to find it cost 33% more.  On Friday Warsh became the new Sheriff in town charged with dealing with this outlaw.  I was hoping he would join the host of Fed governors on the stump this coming week pontificating on what should be done, but I didn't see his name in the speech rosters.  I suppose he will either ignore the inflation, rationalizing it away as "transitory" a la his predecessor, or he will try to add a bit of luster to his new star by taking his horse's reins in his teeth and gun rates higher to curb the enthusiasm (just kidding, there's not a snow ball's chance in hades that will happen). 

 

I think that it is pretty much a dead certainty that he will either explain away and fudge or rejigger the numbers to make it look like there's no problem, but I seriously doubt that my airline ticket will cooperate.  Reality, not inflation is the Fed's actual problem.  How do you convince folks to ignore their lying eyes?

 

Regards,

Douglas