Major averages rose Friday on lower volume though the S&P 500 broke out of its sideways consolidation to close at new all-time highs. Macron is now the new French president as expected. Still, the EU's days are numbered but with Le Pen, the EU's remaining life expectancy may have been more like "sudden death". Futures are slightly lower as Macron's victory was already priced into the markets. Others say it is a "sell the news" event.
Over in domestic economic news, the 4.4% unemployment rate seems difficult to digest when compared to U6 which, when including those who have given up looking for work, pushes unemployment up to around 10%, and shadowstatistics rate of unemployment shows even higher figures.
Meanwhile, the GDP and the Commodity Research Bureau (CRB) index are both showing signs of weakening which seem to be reflective of reduced demand. Over in China, the nation’s crackdown on speculation and borrowing was used as the excuse for slumping commodities prices, but the slump has been ongoing. And we know what economic scares over in China can do to the US markets as we saw in Aug 2015 then in Jan 2016.
Nevertheless, the trend remains up but watch your stocks and remain opportunistic to profitable opportunities on either side as we regularly discuss in our Focus List updates and VooDoo reports.
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