The Confidence Game

The Confidence Game Central banks and President Trump are doing all they can to try to instill confidence into risk markets as there are many cracks below the surface. Flat earnings growth and fading economic growth are being offset with lower interest rates and quantitative easing.  All of this at a time of historical low employment, new highs in the S&P 500 and the greatest economy ever (according to Trump)? Will these measures fuel a new phase of growth or are they being used to create a mirage of confidence while fundamentals deteriorate?  TRI believe it’s a little bit of both as central banks and politician’s actions have extended the current cycles. The S&P 500 has failed to follow through on any material downside setups since Dec 2018 as it recently hit another all time high.  Dec 3 marked the last daily cycle low, the last weekly cycle low in Oct 2019.   Source: TRI cycles are indicating higher prices as, the daily, weekly and monthly cycle and trends are positive for now. TRI continues to follow its signals on various time degrees, as a quick and powerful correction to the downside can happen at any time. Risk is…

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