Hurricane Trump blew through the market creating a pronounced downdraft in prices — 20 someodd in the SPX and similar (a range of 158) in the Dow. There is no known defense for political fits like this. While investors suffered paper losses (presumably temporary– spooking and selling based on such tantrums is bad for your financial health) imagine the distress of the flying public caught in midair or worse in Somalia. Not to mention Syrian refugees who are now like the Jews on the MS Saint Louis on the voyage of the damned, forbidden by Trump to seek refuge here.
One might say that Trump just accomplished what the contrarians usually do, which is drive price back to the breakout line. And technically that is what has occurred here– a breakout and a pullback. As for Trump we will see many more episodes like this where he creates chaos for the fun of it, and the market gets ulcers. In our opinion right now the proper posture is grin and bear it. We remain bullish.
If Tump creates so much turmoil it puts the market in a downtrend we will certainly be there to warn you.