Again, the headlines are poor to dismal and yet stock prices are STILL hanging in there:

For The First Time Since 2000, Most Assets Are Overbought

“We are now seeing a typical bear market rally, and the next downward leg is likely to be just as abrupt as the first one.”

Business Spending Suffers Longest Contraction Since 2015

World’s Largest Shipping Company Warns 2019 Global Economic Outlook Is Worse Than 2018

Market Rally Fizzles As New Front Breaks Out In Global Trade War Amid Dismal Econ Data

Shocking Philly Fed Collapse: Biggest Drop Since 2011 US Rating Downgrade

US Manufacturing PMI Tumbles To 17 Month Low: Weather, Trade Cited

US Housing Market In Freefall As New Buyers Can’t Afford A Home

It’s All About Cars Today’s weak German and Japanese manufacturing PMIs suggest the global trade cycle remains under pressure.

We’ve had to stay with the bulls for a long time and last week we began to become concerned.  This week we’re most definitely concerned and playing the bull side gingerly as we noted that we thought there was little immediate reward left vs. substantial risk.  We may finally have a break of short-term support if we close out today on the downside.  That may be the start of removing some “overboughtness” from this market.  Be smart.  Be safe!

We’ll be scanning again for bears if things do finally appear to turn a little.

Cordially,

Wayne