Hillary Clinton: “The Right Is Afraid Of Me Because I Don’t Die”

After recovering from another coughing fit

Hillary Clinton's so-called commencement speech turned into a political rant as she lobbed implicit impeachment jabs at President Trump over his Comey dismissal

However, in an interview with New York magazine later in the day, election-loser Clinton went to town ripping President Trump for firing FBI Director James Comey, calling it "an effort to derail and bury" the federal investigation into possible ties between the Trump campaign and Russia, and asking (and answering) "why is The Right so afraid of me?"

As The Hill reports, former Democratic presidential nominee Hillary Clinton is pledging not to drop out of the political fight, despite what she calls efforts by some conservatives to silence her.

“You know, these guys on the other side are not just interested in my losing, they want to keep coming after me. I mean, think about that for a minute,” Clinton said.

 

“What are they so afraid of? Me, to some extent. Because I don’t die, despite their best efforts. But what [really drives them] is what I represent."

Which is supremely ironic given the media's incessant attacks on Trump since he 'won' the election. However Clinton was not done.

Then she ripped President Trump for firing FBI Director James Comey, calling it “an effort to derail and bury” the federal investigation into possible ties between the Trump campaign and Russia.

"I am less surprised than I am worried,” Clinton said in an interview with New York magazine published Friday. “Not that he shouldn’t have been disciplined. And certainly the Trump campaign relished everything that was done to me in July and then particularly in October.”

 

“Having said that, I think what’s going on now is an effort to derail and bury the Russia inquiry, and I think that’s terrible for our country,” she said in the interview, which took place a day after Comey's firing.

Finally The Hill notes that the former secretary of State is in the process of writing a book, in which she reflects on her election loss. Clinton says the process is “excruciating.”

An extremely ironic word to use given how so many feel hearing from her every day since the lost election…

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Egyptian Warplanes Bomb Terrorist Camps In Libya After Attack On Coptic Christians

Hours after gunmen opened fire on a convoy of vehicles carrying Coptic Christian worshippers to a desert monastery in Egypt, killing 28, the Egyptian warplanes carried out six bombing strikes targeting camps near Derna in Libya where Cairo believes militants responsible for the deadly attack were trained, Egyptian military sources said quoted by Reuters.

Egyptian President Abdel Fattah al-Sisi said directed strikes against what he called terrorist camps, declaring in a televised address that states that sponsored terrorism would be punished. He also vowed to continue striking bases used to train militants and who carry out terrorist attacks in his country, whether those camps were inside or outside the country.

“The terrorist incident that took place today will not pass unnoticed,” Sisi said. “We are currently targeting the camps where the terrorists are trained.”

“Egypt will not hesitate in striking any camps that harbor or train terrorist elements whether inside Egypt or outside Egypt,” the al-Ahram news agency quoted Sisi as saying.

The strikes took place around sundown, hours after the deadly attack. Christians, who account for about 10% of Egypt’s population of 80 million, have become the victims of an intensifying campaign of bombings and shootings masterminded by ISIS, which is trying to expand its footprint in Egypt. In April, at least 37 people were killed and more than 100 injured in two separate bombings at Christian Coptic churches packed with worshippers in northern Egypt one week before Coptic Easter.

Following the Libyan incursion, Egyptian armed forces released a short video which was aired on state television following the president’s speech. The voiceover in the army video said its air force carried out strikes on targets in Libya “after confirming their involvement in planning and committing the terrorist attack in Minya governorate on Friday.” Egypt’s military said that the air strikes are ongoing, local media reports.

Egyptian security forces have destroyed some 300 vehicles over the past two months which attempted to cross the border from Libya in order to bring in “evil,” according to Sisi, who emphasized the huge efforts his country has undertaken to battle terrorism.

The Egyptian president also directly addressed Donald Trump to take the lead in fighting terrorism. “I direct my appeal to President Trump: I trust you, your word and your ability to make fighting global terror your primary task,” he said. 

On Friday President Trump condemned the attacks on Egypt’s Coptic Christians, denouncing the “thuggish ideology” and “evil organizations of terror.” The White House issued the following statement earlier in the day:

Terrorists are engaged in a war against civilization, and it is up to all who value life to confront and defeat this evil. This merciless slaughter of Christians in Egypt tears at our hearts and grieves our souls. Wherever innocent blood is spilled, a wound is inflicted upon humanity. But this attack also steels our resolve to bring nations together for the righteous purpose of crushing the evil organizations of terror, and exposing their depraved, twisted, and thuggish ideology.

 

America also makes clear to its friends, allies, and partners that the treasured and historic Christian Communities of the Middle East must be defended and protected. The bloodletting of Christians must end, and all who aid their killers must be punished.

 

America stands with President Al Sisi and all the Egyptian people today, and always, as we fight to defeat this common enemy.

 

Civilization is at a precipice—and whether we climb or fall will be decided by our ability to join together to protect all faiths, all religions, and all innocent life. No matter what, America will do what it must to protect its people.

No militant group has yet claimed responsibility for the deadly attack on the bus.

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Weekend Reading: Correction Over As “Trump Hope” Remains

Authored by Lance Roberts via RealInvestmentAdvice.com,

Over the last couple of months, I have repeatedly discussed what has been possibly the most “boring” market ever. That was until the previous Wednesday when the market deciding to take a quick “road trip” to the 50-dma. 

It didn’t last long.

The market promptly went back to sleep in a light volume flotation (note decline in volume during advance) back to old highs. Yesterday, after multiple attempts, the market was finally able to muster a breakout above 2400 as “hopes and dreams” of “Trump tax cuts” once again took the lead over worries of “impeachment.” 

While on a short-term basis, the bullish bias continues, which keeps portfolios invested, for now, the intermediate-term (weekly) trends also remain within the confines of the bullish trend from the lows of 2016. However, the “alert” signal still remains from a very high level as markets push back into extreme overbought terrain. This suggests that upside is somewhat limited as there has not been enough of a correction to alleviate more extreme conditions.

Importantly, as noted on Tuesday, bonds aren’t buying the breakout:

“Lastly, despite stocks pushing near all-time highs, the bond market continues to flirt with levels close to 2%. The continued move to “risk off” holdings, despite a rising stock market, suggests that ultimately either stocks OR bonds will be wrong. Historically, bonds have tended to be right more often than not.”

Economic data is not buying it either, as data continues to come in softer than expected from new and existing home sales, to autos, to inventories.

Either the stock market is right and everything is going to play “catch up,” or it’s not.

While we remain long-biased in equities currently, we continue to remain wary of the underlying deterioration in both market and economic data.

Yes, anything is certainly possible. It just usually isn’t. 

In the meantime, here is what I am reading this weekend.


Politics/Fed/Economy


Markets


Research / Interesting Reads


“Anybody who plays the stock market, not as an insider, is like a man buying cows in the moonlight.” – Daniel Drew

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Florida Gov. Rick Scott Won’t Let You Buy Booze in Grocery Stores

Florida Gov. Rick Scott vetoed a bill that would have allowed grocery stores, gas stations, and other retailers to sell liquor alongside the beer and wine they already offer. The proposal to tear down Florida’s so-called “liquor wall” had cleared the state legislature despite opposition from groups that benefit from the mandatory separation of liquor sales, including the liquor stores themselves and a major grocery chain that runs a series of independent liquor stores.

The Miami Herald reports that the “winners” from Scott’s veto include independent liquor-store owners, ABC Fine Wine & Spirits and Publix Super Markets,” all of which opposed the bill as it was making its way through the state legislature. Rory Eggers, president of the Florida Independent Spirits Association, which represents the privately-owned, spirits-only retailers across the state, said in a statement that the group delivered more than 3,000 petitions to Scott urging him to veto the bill.

Like a good Republican, Scott claimed the veto was about looking out for the best interests of the business community in Florida—even though the businesses in question only exist because of a protectionist scheme that’s been maintained by the state government since the end of Prohibition.

“I have heard concerns as to how this bill could affect many small businesses across Florida,” Scott wrote in his veto message. “I was a small business owner and many locally owned businesses have told me how this bill will impact their families and their ability to create jobs.”

Scott’s logic doesn’t make much sense, though. By his reasoning, Florida should mandate that each and every product sold in grocery stores or Wal-Marts have to be sold by a separate retailer. There should be one store for vegetables, another store for paper goods, a separate one for dairy products, and so on. Imagine how many small businesses that would create!

That’s nonsense, of course, just like the governor’s argument for maintaining Florida’s protectionism for liquor stores. Scott can dress it up however he wants, but this veto is very much an anti-consumer move. Retailers that want to make shopping more convenient should be allowed to do that.

The claim that he’s protecting small businesses is similarly questionable. Under the current law, large grocery stores like Publix benefit from being able to house separate liquor stores within their footprint, while smaller grocery stores that can’t afford to do that are not allowed to sell liquor.

Most of all, though, this is about maintaining a special government-granted privilege that benefits some businesses at the expense of others.

It’s another illustration of the relationship between government and booze that I highlighted earlier this month in a feature about the latest efforts to reform Pennsylvania’s liquor laws. The only difference is that, in Pennsylvania, the liquor stores are government-run entities and the employees are government workers (and public sector union members), so it’s Democrats who typically argue against doing away with the stand-alone liquor stores. When they do, they use pretty much the same reasoning that Scott employed this week in Florida, claiming that allowing other retailers to sell liquor would hurt the workers whose jobs only exist because of government edict.

In Florida, the liquor stores are privately run (which is better, I’ll grant), so it’s Republicans like Scott defending them as small businesses in need of government protection.

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G7 Leaders Fail To Persuade Trump To Back Climate Deal After “Controversial” Debate

The Group of Seven world leaders, or rather Six excluding Trump, tried to tame the US president… and failed. Which means on Saturday the group will sign off on a substantially “pared-down” statement at the close of their meeting in Sicily – an indication of deep divisions on climate change and trade between Trump and the rest of the developed world. Pushing hard to persuade Trump to back the landmark Paris climate accord deal, after hours of talks that were described by Angela Merkel as “controversial”, the G-7 leaders failed to get Trump’s endorsement.

The leaders did, however, issue a joint statement on fighting terrorism, admonishing internet service providers and social media companies to “substantially increase” their efforts to rein in extremist content. According to Italy’s Prime Minister and host, Paolo Gentiloni, the group was also inching closer to finding common language on trade, a controversial for Trump who has repeatedly pushed for an “America first” agenda.

But on the issue of climate, there was no breakthrough.

“There is one open question, which is the U.S. position on the Paris climate accords,” Gentiloni told reporters according to Reuters, referring to a 2015 deal on reducing greenhouse gas emissions.

 

“All others have confirmed their total agreement on the accord.” U.S. officials had signaled beforehand that Trump, who dismissed climate change as a “hoax” during his campaign, would not take a decision on the climate deal in Taormina, the cliff-top town overlooking the Mediterranean where G7 leaders met.

Other leaders, including German Chancellor Angela Merkel and new French President Emmanuel Macron, had hoped to sway the president at his first major international summit. 

They failed, despite what Merkel described as a “controversial” climate debate and added that there was a “very intensive” exchange of views. One can only imagine.

Speaking separately, Trump’s economic adviser Gary Cohn said Trump’s views on climate were “evolving” and that he would ultimately do what was best for the United States.

* * *

The tense summit, held at a luxury hotel that was once a Dominican monastery and base for the Nazi air force during World War Two, took place one day after Trump blasted NATO allies for spending too little on defense and described Germany’s trade surplus as “very bad” in a meeting with EU officials. As noted yesterday, Trump’s NATO speech shocked allies, who had been expecting him to reaffirm Washington’s commitment to Article 5, the part of the military alliance’s founding treaty which describes an attack on one member as an attack on all.

Italy chose to stage the summit in Sicily to draw attention to Africa, which is 140 miles (225 km) from the island at its closest point across the Mediterranean. More than half a million migrants, most from sub-Saharan Africa, have reached Italy by boat since 2014, taking advantage of the chaos in Libya to launch their perilous crossings.

In addition to trade and climate, drafts of the communique as of Friday were due to address topics such as migration and gender equality. The “ongoing large-scale movement” of migrants and refugees calls for “coordinated efforts,” according to a draft of the communique seen by Bloomberg News.

“We reaffirm the sovereign rights of states to control their own borders and set clear limits on net migration levels, as key elements of their national security and economic well-being,” according to the draft.

 

The nations are also set to say gender equality is fundamental for human rights. The leaders also issued a separate statement on counter-terrorism efforts that called on social media companies to do more in the fight against terrorism.

As the leaders attended a concert and gala dinner on Friday night, their aides worked to finalize the draft wording. “On the major theme of global trade, we are still working on the shape of the final communique, but it seems to me the direct discussions today have produced common positions that we can work on,” said Gentiloni.

The final G7 communique traditionally outlines the common positions
of the member states’ leaders on the economy and other global issues
requiring joint action by the world’s leading powers. This year’s
statement is on pace to be less than 10 pages, or less than a third the 32-page memo signed last year in Japan, according to Bloomberg. 

“You
can test this stuff empirically. A shorter communique tends to mean the
less they actually produce by way of commitments,” John Kirton, director of the University of Toronto’s G7 Research Group, told Bloomberg. He downplayed the relative scale of divisions:

“I don’t
think it’s more divided than it’s ever been before,” he said, citing
the 1982 summit as a failure where the issue of a Soviet gas pipeline,
opposed by Ronald Reagan, divided the countries. “So they patched over
some communique, but then they all ran off to their post-summit
briefings and said ’we don’t agree with it, we don’t agree with it.’ So
it made things worse. They kind of publicized their failure.”

* * *

There was one thing the group could agree on: a crackdown on the “internet abuse.”

“We will combat the misuse of the Internet by terrorists,” the statement said. The G-7 “calls for communication service providers and social media companies to substantially increase their efforts to address terrorist content.”

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Ariana Grande Will Return to Manchester, Hillary Criticizes Trump: P.M. Links

  • CerseiAriana Grande will return to Manchester to play at a benefit concert for victims of the bombing.
  • Hillary Clinton criticizes President Trump in her commencement speech at Wellesley College.
  • John Boehner says Trump has been “a complete disaster.”
  • The Obamacare repeal bill faces a divided Republican Senate.
  • Game of Thrones Season 7 trailer earns 61 million views in 24 hours.

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Trump’s Repeal of a Welfare Drug-Testing Regulation Backfires (Thankfully)

||| ReasonThe 1996 Congressional Review Act, which gives Congress a limited time window after a regulation is implemented to repeal it, was successfully used just once in its first two decades in existence. That all changed in the first half of 2017, as a GOP-led Congress took advantage of a new, actively deregulatory Republican president to roll back a total of 14 late Obama-era rules.

Eyeballing the list (and also consulting Reason‘s work on the specific bills; on which see more below), only one of the CRA repeals stuck out at me as facially unfortunate: the rollback of a 2016 Labor Department rule defining which occupations that states can drug-test for (as authorized by the Middle Class Tax Relief and Job Creation Act of 2012) when disbursing federal unemployment insurance. The qualifying jobs, according to Bloomberg, were mostly “limited to the transportation and pipeline industries, as well as jobs that require carrying a gun or were already legally mandated to have drug tests, such as nuclear plant staff.” Republicans like Sen. Ted Cruz (R-Texas) found the list too limiting, and therefore “yet another instance of executive overreach by the Obama administration.”

Republicans do love their drug-testing of welfare cases (individual welfare, mind you, never the corporate variety), regardless of the constitutionality or efficiency. Why, just look at how much fun it is!

Or maybe not.

According to a perceptive and somewhat complicated piece by Bloomberg‘s Josh Eidelson, the CRA repeal actually “takes away some limited [drug-testing] authority states already had.” How?

Because the 2012 law let states test people suited for jobs specified by federal regulations, now that those regulations have been scrapped, there are no jobs for which states are able to test for drugs. Before Congress revoked Obama’s rules, states could have tested aspiring pipeline operators and commercial drivers; now they can’t.

In other words, congressional Republicans went after the enacting interpretation, while kinda-sorta forgetting the underlying legislation that they themselves wrote. If you don’t want the Labor Department making rules, don’t pass in your laws language like “an individual for whom suitable work (as defined under the State law) is only available in an occupation that regularly conducts drug testing (as determined under regulations issued by the Secretary of Labor).”

There’s a lesson here, one that’s shot through my June cover story on Trump’s deregulatory efforts. The executive branch can do (and already has done) quite a bit of regulatory rollback on its own, but the whole reason you have not just regulations but the agencies writing and enforcing them is that Congress has made laws instructing the federal bureaucracy to do stuff. You can eliminate the Department of Education, but that won’t stop the federal government from sloshing money toward public schools in the absence of rewriting legislation from the 1960s. It’s easy for a legislator to throw stones at an out-of-control bureaucracy (or more fruitful yet, nobly guide his or her constituents through all the red tape); much harder to undo what Congress has already done.

So what’s next on drug-testing unemployment recipients? Unless Congress gets off its duff, “States will get to impose broader testing requirements only if the Labor Department goes through its own formal rule-making process to issue stricter regulations,” Bloomberg concludes. That process takes roughly one to three years. But even then, there’s a catch that likely few people in the Trump administration had thought through:

[T]he 1996 review act bans an agency whose regulation has been voided from enacting any new regulation that’s “substantially the same.” Before Trump took office, the law had been used only once, to undo ergonomics rules issued under President Bill Clinton, and no president tried to regulate that area again. Any regulation [the Labor Department] comes up with is likely to be challenged in court on the grounds that it resembles Obama’s. “Nobody can predict with any degree of confidence how a court is going to react to any rule that covers the same subject matter,” says Richard Pierce, a George Washington University law professor.

We shall see if the “substantially the same” clause trips up Trump’s other CRA repeals. In the meantime, after the jump, here are two dozen Reason pieces on the new administration’s deregulatory activity to date, in reverse chronological order:

* “Report: Regulation ‘Has Essentially Ground to a Halt’ Under Trump: The Obama administration submitted 118 new rules in the same time it has taken Trump to make just 39,” by Matt Welch.

* “Rand Paul’s REINS Act Finally Makes It to Senate Floor: A new high water mark for regulatory reform, but another bill might eclipse Paul’s proposal,” by Eric Boehm.

* “The Left Is Rebranding Environmental Regulations As Environmental Protections: Cloaking government control in the language of benevolence,” by Ronald Bailey.

* “Congressional Deregulation Effort Stalls at Methane Rule Repeal: States and industry will seek to roll back BLM’s ‘vast overreach’ of regulatory authority in court,” by Ronald Bailey.

* “EPA Bureaucracy Strikes Back: The Case of the Board of Scientific Counselors: How will the struggle between the permanent bureaucracy and the EPA’s new leadership play out?” by Ronald Bailey.

* “Could Trump’s Deregulation Be a Lifeline for Struggling Entrepreneurs?: If he uses it right, the president’s experience with taxes and red tape could benefit workers and small businesses,” by J.D. Tuccille.

* “The Fear-Based Campaign to Control the Net: A transparent attempt to establish government control over the rare place where freedom is still highly regarded,” by Veronique de Rugy.

* “Trump May Dabble in Deregulation, But He Doesn’t Believe in Free Markets,” by John Stossel.

* “Plan to Roll Back Internet Regulations a Boon for Business and Innovation: Goodbye and good riddance to the Obama administration’s ‘Open Internet Order,'” by Andrea O’Sullivan.

* “Trump’s First 100 Days: At Least He Picked Some Good People to Run Things: The best thing about Trump’s administration is the parts that aren’t Trump (or Jeff Sessions),” by Eric Boehm.

* “FCC Chairman Ajit Pai on Why He’s Rejecting Net Neutrality Rules: ‘We were not living in a digital dystopia in the years leading up to 2015,'” by Nick Gillespie and Mark McDaniel.

* “Media: Openly Using a Bill Clinton/Harry Reid Law = ‘Stealth Assault on U.S. Regulations’: More journalistic hysteria in the face of drop-in-the-bucket deregulation,” by Matt Welch.

* “Trump Reversing Record Number of Regulations: President signs four more Congressional Review Act rollbacks, bringing total number to seven…or six more than all his predecessors combined,” by Matt Welch.

* “Donald Trump’s Climate Change Executive Order Will Make Energy Cheaper: But it will not bring back a lot of coal mining jobs,” by Ronald Bailey.

* “Relax: Gutting the EPA Won’t Make Your Air Dirtier and Water More Polluted: There have been diminishing returns to federal pollution regulation for a long time,” by Ronald Bailey.

* “Trump Administration to Review Obama-Era CAFE Standards: ‘We’re going to work on the CAFE standards so you can make cars in America again,'” by Ronald Bailey.

* “Scott Gottlieb: Trump’s Nominee for Food and Drug Administration Commissioner: Understands how over-regulation is slowing down innovation in medicines and foods,” by Ronald Bailey.

* “New York Times Thinks Businesses Are Dogs That Need Pre-emptive Choking From Government: ‘Leashes come off’ corporations, newspaper warns, unwittingly suggesting why Trump’s deregulations might have corrective merit,” by Matt Welch.

* “Trump’s Charge for FDA Regulatory Reform Could Be Good News for Snus: The Swedish-made cigarette alternative knows all about the FDA’s ‘slow and burdensome’ permitting process. Some changes could make Americans healthier,” by Eric Boehm.

* “Trump and How to Speed Up FDA Regulatory Approvals: Slashing the restraints on the agency’s slow and burdensome process,” by Ronald Bailey.

* “Trump Took a Break from Fearmongering to Approve Good Gun Rights Bill: Due process protections preserved for those getting Social Security benefits,” by Scott Shackford.

* “Trump, Navigable Waters, and the EPA’s WOTUS Regulations: Rolling back a ‘federal land grab’ or instituting an ‘unmitigated disaster for fish and wildlife, hunting and fishing, and clean water’?” by Ronald Bailey.

* “Frankly, Trump’s Plan To Review and Reform Dodd-Frank Makes a Lot of Sense: The president promises to prevent taxpayer-funded bailouts, and, hey, that makes sense too,” by Eric Boehm.

* “The House Passes a Gun Measure Supported by the ACLU and Mental Health Advocates. Media Hysteria Ensues.: Bad reporting, and bad attitudes, make a sensible move to prevent the government from discriminating against certain Social Security recipients seem like sheer madness,” by Brian Doherty.

* “Donald Trump May Try To Stifle Freedom of Expression but His FCC Head Ajit Pai Will Defend a ‘Free and Open Internet’: Pai favors free speech but not treating the Internet as a public utlity. That’s exactly right,” by Nick Gillespie.

* “Trump’s Executive Order on Regulations Is Welcome, But More Is Needed: President Donald Trump followed-up a busy and divisive first week in office by issuing an executive order that takes aim at the federal regulatory state,” by Eric Boehm.

* “Trump, House Republicans Target EPA, Energy, Interior for Regulatory Cuts: Trump plans to use executive orders to hack away at federal regulations, but he’ll need congressional help to make lasting reforms,” by Eric Boehm.

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Stocks Surge For 7th Straight Day As US Macro Data Hits 15-Month Lows

"Smells Like Victory" – Happy Memorial Weekend…

 

Let's start with this…

 

S&P at record highs as US macro data topples to 15-month lows…

 

Nasdaq hit record highs as Earnings Expectations slump to 2017 lows…

 

Small Caps remain underwater post-Trump-Dump… Nasdaq is now up 7 days in a row – longest streak since early Feb

NOTE – today was different – no big spike in stocks

 

Today saw S&P and Dow glued to the flatline…with a very chaotic end

 

Volume continues to collapse in this levitation off the Trump Dump…

 

As the cap-weighted S&P continues to dramatically outperform the equal-weighted S&P (i.e. the big tech names are driving)

 

S&P Equal weight remains below the March highs…Simply put, without FANG stocks, th emarket has gone nowhere in almost 3 months…

 

As Citi notes, a close today above 2,405 on the S&P 500 suggests we can rally towards 2,500+ in the coming weeks:

  • Even within trends, markets do not move in straight lines. Rather, market rallies are interspersed between sideways moving markets. In some cases, the majority of a rally is spent in consolidation with the big moves in the trend happening quickly. Such a dynamic is currently at play in the S&P 500.
  • Since the bullish break seen in July 2016, the S&P 500 rallied 14% over 46 weeks through today (this came after over a year of the S&P 500 consistently failing around the 2,100 area). However, most of that time has been spent with the equity market in consolidation/ranges. The actual gains have taken place over just 14 of those 46 weeks in the shape of quick market rallies.
  • We may now be on the verge of another such move. In the prior three rallies since July, a weekly close through the top of the prior range has signaled the start of a multi-week rally. Another break like this would be confirmed with a close today above 2,405.
  • If this is a bullish break, how high can we go? The average rally after the prior three breaks (from the break level) has been 4.2% and a similar move this time would suggest a move to 2,506 in the coming weeks.
  • Beyond that, we continue to view the overall global economic and market backdrop to be positive for Equities and continue to think a move towards 2,750 by year end can be seen

 

Finally, while AMZN dropped after testing towards $1000 agains today, it closed modestly green again (for the 7th straight day)

 

Here is a helpful chart in case you were wondering what was driving AMZN's success?

 

VIX is down 7 straight days and clsoed at the lowest weekly close since 1993…

 

Short-term VIX crashed a record low…

 

Treasuries ended the week marginally higher in yield…

 

But the yield curve (2s10s and 2s30s) have tumbled to cycle lows…

 

The Dollar index managed to close green on the week after bouncing off the post-Fed drop…

 

Cable was by far the weakest against the greenback and Yuan the strongest…

 

Despite dollar ended higher, gold and silver gained on the week…

 

WTI and RBOB both fell on the week after OPEC disappointed…

 

Gold and Silver had a great week (with the last now well above pre-fed rate hike lows)

 

Finally, Bitcoin was hitting the headlines every day this week and ended on a weak note (biggest drop since January) but still up over 10% on the week…

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US Plans First Ever ICBM Intercept Next Tuesday

Less than a month after the US Air Force successfully test fired two Minuteman ICBM missiles from California’s Vanderberg Air Force base, which hit a target approximately 4,200 miles away at Kwajalein Atoll in the Pacific Ocean, today Pentagon officials said that the US will try to shoot down an intercontinental-range missile for the first time in a test next week, in “preparation for North Korea’s growing threat.” According to AP, the stated goal is “to more closely simulate a North Korean ICBM aimed at the U.S. homeland.”

The Pentagon’s Missile Defense Agency on Tuesday will shoot an interceptor from the Ground-based Midcourse Defense system, a network meant to protect the country against a limited nuclear attack, at a custom-made missile meant to simulate an ICBM. 

As ABC adds, an interceptor is to be launched from an underground silo at Vandenberg Air Force Base in California and soar toward the target, which will be fired from a test range on Kwajalein Atoll in the Pacific. If all goes as planned, the “kill vehicle” will slam into the ICBM-like target’s mock warhead high over the Pacific Ocean. The target will be a custom-made missile meant to simulate an ICBM, meaning it will fly faster than missiles used in previous intercept tests, according to Christopher Johnson, spokesman for the Missile Defense Agency. The target is not a mock-up of an actual North Korean ICBM, Johnson added.

The basic defensive idea is to fire a rocket into space upon warning of a hostile missile launch. The rocket releases a 5-foot-long device called a “kill vehicle” that uses internal guidance systems to steer into the path of the oncoming missile’s warhead, destroying it by force of impact. Officially known as the Ground-based Midcourse Defense system, the Pentagon likens it to hitting a bullet with a bullet.

 

The Pentagon’s Missile Defense Agency, which is responsible for developing and testing the system, has scheduled the intercept test for Tuesday.

“We conduct increasingly complex test scenarios as the program matures and advances,” Johnson told AP on Friday. “Testing against an ICBM-type threat is the next step in that process.”

While the Pentagon has a variety of missile defense systems, the one designed with a potential North Korean ICBM in mind is perhaps the most technologically challenging. Critics say it also is the least reliable. According to AP, the American interceptor has a spotty track record, succeeding in nine of 17 attempts since 1999. The most recent test, in June 2014, was a success, but that followed three straight failures. The system has evolved from the multibillion-dollar effort triggered by President Ronald Reagan’s 1983 push for a “Star Wars” solution to ballistic missile threats during the Cold War – when the Soviet Union was the only major worry…. which is probably why officials were quick to hedge that this is not a make-or-break test.

The interceptor system has been in place since 2004, but it has never been used in combat or fully tested. There currently are 32 interceptors in silos at Fort Greely in Alaska and four at Vandenberg, north of Los Angeles. The Pentagon says it will have eight more, for a total of 44, by the end of this year.

The test will follow a successful North Korean launch Sunday, during which the country fired a medium-range ballistic missile that landed in the Sea of Japan. Last Monday, AP reported Monday that North Korea is ready to begin the mass production of its new missile, which could reach Japan and major military bases.  Marine Corps Lt. Gen. Vincent Stewart, director of the Defense Intelligence Agency, said this week that “left unchecked,” a North Korean missile will eventually be able to reach the United States.

Some more details on the Pentagon’s strategy from AP:

According to the Pentagon, North Korea does not yet have the technology to reach the West Coast with a missile, but the military is preparing should it happen. The test will following a successful North Korean launch Sunday, during which the country fired a medium-range ballistic missile that landed in the Sea of Japan.

 

While it wasn’t scheduled with the expectation of an imminent North Korean missile threat, the military will closely watch whether it shows progress toward the stated goal of being able to reliably shoot down a small number of ICBMs targeting the United States. The Pentagon is thirsting for a success story amid growing fears about North Korea’s escalating capability.

 

“I can’t imagine what they’re going to say if it fails,” said Philip Coyle, senior science fellow at the Center for Arms Control and Non-Proliferation. He headed the Pentagon’s office of operational test and evaluation from 1994 to 2001 and has closely studied the missile defense system. “These tests are scripted for success, and what’s been astonishing to me is that so many of them have failed,” Coyle said.

The test comes at a sensitive time for the Petnagon: this week it presented Congress with its 2018 budget which proposed spending $7.9 billion on missile defense, including $821 million for more interceptors. Sen. Dan Sullivan (R-Alaska) wants 28 additional interceptors in Alaska and California, increasing by more than 30 percent the number of interceptors currently in the United States.

The U.S. already has 36 interceptors, with four at Vandenberg Air Force Base along the California coast in Santa Barbara County and the rest at Alaska’s Fort Greely. The Obama administration also signed off on plans to add eight more to Alaska by the end of 2017. The plan also asks for $465 million for upgrades and testing for the Redesigned Kill Vehicle, part of the interceptor missile, and to replace old ground control systems. In addition, the budget requests $451 million, up from $95 million last year, for the Long-Range Stand-Off missile, a nuclear cruise missile that the Air Force can fire from the B-52, B-2 and the B-21 bomber.

President Donald Trump recently ordered the Pentagon to undertake a ballistic missile defense review. Some experts argue the current strategy for shooting down ICBM-range missiles, focused on the silo-based interceptors, is overly expensive and inadequate. They say a more fruitful approach would be to destroy or disable such missiles before they can be launched, possibly by cyberattack.

via http://ift.tt/2r4VjIv Tyler Durden

And The Best Performing Stock Market In The World Is…

Authored by Simon Black via SovereignMan.com,

Pop quiz: What country has the world’s best performing stock market?

It’s not the United States. Or Canada. Or China.

The answer is Venezuela, whose primary stock market index over the last year is up nearly SEVEN FOLD, from 11,700 last summer to a record 72,700 today.

It’s amazing that a country where people are literally starving because there’s very little food available is seeing record stock market performance.

At face value it would seem that anyone who had invested in Venezuela stocks is an absolute genius and swimming in money right now.

But remember that Venezuelan stocks are denominated in local currency.

Officially the Bolivar’s exchange rate with the US dollar is around 10:1. But due to the country’s hyperinflation, the black market rate is closer to 6,000:1.

And that black market rate is also up nearly 7-fold over the last year.

So anyone who had purchased Venezuelan stocks last summer might be up hundreds of percent if you measure performance in bolivares.

But in US dollars you’d actually be down a bit.

This is one of the hallmarks of inflation; it’s not just retail prices that increase. Asset prices rise as well.

But it’s not real wealth.

Think about it– if the value of your home increases by 2% per year, and inflation is also 2% per year, you have zero gain in prosperity.

Or another example: if stock prices increase by 10%, you then have to pay state and federal tax on your capital gains.

Maybe you have 7% left over. Then take out 2% (or more) for inflation. You’ve lost half of your gain.

Ok, still, maybe not a bad sum. But compare that return against the risk that you’re taking: is 5% worth the risk?

This is one of the most insidious effects of inflation: we put up with rising prices because we think that we are becoming more prosperous over time, even though the opposite is usually true.

Inflation is like a cancer that slowly eats away at everything– the purchasing power of your savings, your income, and even your investment performance.

And the people who engineer it have been extremely clever.

Have you ever noticed that official inflation statistics are typically reported on a MONTHLY basis?

The most recent headline from the US Department of Labor’s Consumer Price Index, for example, reads “CPI for all items rises 0.2% in April. . .”

That’s pretty masterful.

I mean, who is going to bat an eyelash at 0.2%? It’s a rounding error. No one cares.

A more intellectually honest way of reporting would be, “Prices increased 10% over the last four years.”

That’s a lot more noticeable.

They also rarely present inflation data alongside wage and salary data.

For example, the inflation report doesn’t say “prices increased by 0.2%, while wages increased by only 0.1%.”

Or more succinctly, “the average worker became less prosperous last month.”

That would be terribly inconvenient for policymakers.

But perhaps their most masterful stroke has been making people terrified of falling prices.

In economics, the dreaded ‘deflation’ is regarded as an absolutely horrific outcome.

The theory is that if prices fall by even just 1%, no one will go out and spend money.

Instead they’ll just sit on their savings and wait for prices to continue falling, and this will send the economy into a tailspin.

Deflation the most absurd fairytale in economics. And that’s saying a lot.

So rather than wanting folks to enjoy a small discount and build up a pool of savings, they’ve managed to convince everyone that a little bit of inflation is healthy and normal.

Losing 10% of your savings every few years doesn’t seem healthy or normal to me.

Instead it feels like a lot like a wealth tax.

*  *  *

Interestingly, in USD terms, while Venezuela looks like the best (this is based on the official FX rate, not the hyperinflating real dollar blue), but look at which nation is worst…

via http://ift.tt/2rH9iXO Tyler Durden