Macro Influences on the Equities Markets

SYNOPSIS

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It’s official! Trump has effectively put American farmers on welfare. He’s earmarked $12 billion to compensate farmers who are losing overseas business due to his trade war. This might appease some Trump supporters for part of this year’s crop losses; but there will hundreds of billions more required once 2019 comes around. Trump does not have the authority to authorize those kinds of outlays on his own. This, by the way, is almost exactly the same scenario that led to the Great Depression of the 1930s. America will never win a trade war, and the sooner Trump throws in the towel, the better… for the American economy and for investors.

Day by Day… Since we started summarizing each week’s market action in this simple chart, we’ve certainly learned that there’s no such thing as a typical week. The S&P 500 had a decent ramp up through Wednesday, before finishing with a gain of a little more than 0.5%. The S&P/TSX Composite Index, meanwhile, stayed pretty flat before dropping on Friday for a loss on the week.

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There was little trading last week in the ProfiTrend Portfolio. We dropped one holding to a sell signal. The round-trip was profitable.

PTA PERSPECTIVE… Macro Influences on the Equities Markets
While our approach here at The ProfiTrend Advantage is to focus on the present, and to optimize our buy/sell decisions as much as possible, we occasionally like to look at predictive models as well to provide a broader perspective. That’s what we’re doing this time, as we scrutinize and evaluate the early stages of an interactive tool for this purpose from MarketWatch.com. We critique the approach, the evidence, and the objectives.