Powell in Focus Ahead of CPI Later This Week

Follow @MrTopStep on Twitter and please share if you find our work valuable!

Every week, MrTopStep invites traders to an “Own the Close” contest where the closest guesstimate where the SPX will settle on Friday’s 4:00 cash close.

The winners get a free week's access to the MrTopStep Chat and trading tools. Enter your guess now!

Our View

I try very hard not to get all crazy about the election or, for that matter, be an alarmist. As I have said many times, I don't watch FOX News or any news channel for my daily viewing. Being tied to the MrTopStep trading room, LiveSquawk London, and my new app on my phone, — and of course, the internet — is more than enough…maybe more than enough. 

My good friend Joel has FOX News on in his kitchen, living room, and bedroom all going at once. The PitBull is also on what I call a news overload. He is up in Saratoga for the summer, watching his horses run, and as much as I keep telling him to enjoy his life and go have fun, he can't. He fully admits to being a trading junkie, but today he was all charged up, saying the markets are going to fall. He says the S&P and NASDAQ can't keep making new highs with negative breadth. 

He continues to say that some well-known market timers are looking for a high into the middle of July. The PitBull added that his work shows possible weakness going into the fourth week of August. He is also concerned about a constitutional crisis going into the election and mentioned Nixon's departure from the White House in 1974. The last thing he said is that there is going to be a mess at some point.

I could just copy part of this article I found about what happened after Nixon resigned, but this is a really good story and, as much as I hate to say this, reflects the current environment. From the start of 1973 to when Nixon left office, the S&P fell 50%.