sp'daily5
VIX'daily3
Summary
It was a day of minor weakness for the US equity market, as reflected in the VIX which climbed for a second consecutive day. However, its notable that the VIX couldn't see the 13s at all in February... something we've not seen since June 2014.
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As for the SOTU
Tonight's address by President Trump is profoundly important. Its not just a speech to placate or inspire his party or even the broader congress/senate. It will be a speech where Trump will lay it all out.... to the world. The US economy is still struggling, and Trump's core aim will be to increase economic growth, whilst also launching a massive re-building scheme across the nation.
An infrastructure (phase'1) plan will likely total around $1trn. How will it be funded? I've long believed they could do it via a special 'US infrastructure 30/50yr bond'. Ironically, some of those would no doubt eventually find their way into the balance sheets of central banks across the world.
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The monthly close...
It was a very bullish month for the US and most other world equity markets...
sp'monthly3c
A net monthly gain for the sp'500 of 84pts (3.7%), with a new historic high of 2371. Its been a full year since we saw a bearish red (Elder impulse) candle. I'll cover the US and other world equity markets in depth this coming weekend.
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It was another very mixed day for the Gold Miners. If you're curious to dig deeper, go pick up my first Gold Miner report.
For details: http://permabeardoomster.blogspot.com/p/research-reports.html
Goodnight from London