US stocks rally after Trump cancels Mexican tariffs

US stocks rally after Trump cancels Mexican tariffs


PEOPLE TURN OUT ON THE STREETS. JAMES, STAY THERE, PLEASE. MORE FOR YOU IN JUST A MOMENT.>>>LET’S GET BACK TO MONEY THIS MONDAY MORNING. IT’S WORTH LOOKING AT FUTURES BECAUSE WE ARE GOING TO OPEN UP ALL OVER AGAIN. HUGE WEEK LAST WEEK AND WE ARE UP WELL INTO THE TRIPLE DIGIT LEVEL THIS MORNING WHEN THAT MARKET GETS GOING. DENNIS GARTMAN JOINS US NOW. ALL RIGHT, HAVE ALL RIGHT, I’VE GOT A WEAK JOBS REPORT, THE FED MAY LOWER INTEREST RATES AND WE HAVE THIS NO TARIFFS ON MEXICO. AM I MISSING SOMETHING? IS THERE ANOTHER REASON WHY THIS MARKET IS RALLYING?>>NO, THOSE ARE THREE GOOD REASONS AND WHY SHOULD IT NOT. WE WALKED IN LAST MONDAY AND REMEMBER, I TRADE ONLY FOR MY OWN ACCOUNT. I CAME IN ACTUALLY SHORT LAST WEEK BECAUSE AT THAT POINT, WE HAD TARIFFS GOING ON IN EFFECT IN MEXICO. WE DIDN’T HAVE YET A CHANGE IN FEDERAL RESERVE POLICY AND NOW THAT’S ALL CHANGED IN THE COURSE OF A WEEK. IT’S BEEN EXTRAORDINARY. AS ONE OF THE GREAT MARKET WATCHERS OF ALL TIME, MARTY ZWEIG USED TO SAY DON’T FOUGHT THE FED, I FOUGHT THE FED, I LOST. FIGHTING THE FED IS AN ILL-ADVISED DECISION ON MY PART AND CLEARLY, STOCK PRICES SEEM TO WANT TO GO HIGHER. I’M SURPRISED BY THAT FACT BUT THEY DO WANT TO GO UP. STUART: FOR YOUR OWN ACCOUNT, ARE YOU NOW NO LONGER SHORT BUT GOING LONG, IN OTHER WORDS, ARE YOU NOW BUYING?>>IT TAKES ME AWHILE TO GET — TO COVER SO I’M STILL — I STILL HAVE MARGINAL, WELL, SHORT POSITIONS. I’M QUIETLY MARGINALLY MODESTLY NET LONG BUT I STILL HAVE SHORT POSITIONS ON. I HAVE TO TRY TO GET THEM BACK IN. IT’S A MATTER OF COVERING IN A FEW MORE THIS MORNING AND BUYING A FEW MORE STOCKS TO GO LONG. I’M MARGINALLY NET LONG AND HAVE BEEN FOR ABOUT TWO DAYS. IT TAKES ME A COUPLE DAYS TO CHANGE. I’M LIKE AN AIRCRAFT CARRIER. I DON’T CHANGE THAT QUICKLY. STUART: OR AN OIL TANKER TURNING AROUND.>>OR AN OIL TANKER. STUART: WAIT A SECOND, AM I RIGHT IN SAYING IF YOU LOOK AT THE MARKETS, THERE ARE SOME INDICATORS SUGGESTING THAT THE MARKET EXPECTS TWO, MAYBE THREE RATE CUTS THIS YEAR? IS THAT ACCURATE?>>THAT’S VERY ACCURATE. THAT’S EXACTLY WHAT’S GOING ON. YOU TAKE A LOOK AT THE FED FUNDS FUTURES MARKETS, THEY ARE ALREADY ANTICIPATING GIVEN NO QUESTION, ONE, 50% PROBABILITY OF TWO, AND I THINK 20% OR 30% PROBABILITY OF THREE. REMEMBER, THE FED DOES NOT LEAD RATES. THE FED FOLLOWS RATES. THE MARKET SETS RATES. THE FED FOLLOWS LATER. THE MARKET IS TELLING YOU THE FED IS GOING TO MOVE RATES OVER THE COURSE OF THE NEXT SIX MONTHS TO A YEAR. THE ECONOMIC DATA THAT CAME OUT ON FRIDAY WOULD GIVE THEM COVER TO MOVE IF NOT AT THE NEXT FOMC MEETING LATER THIS MONTH, PERHAPS CERTAINLY IN JULY AND ALMOST CERTAINLY BY SEPTEMBER, A 1.5 OR 2 CUTS BY THAT PERIOD OF TIME. YES, STUART, THE MARKET IS SAYING 2, MAYBE EVEN 3. I THINK IT WILL BE VERY DIFFICULT TO GET A THIRD RATE CUT BEFORE THE END OF THE YEAR. BUT 2 IS A GIVEN AT THIS POINT. STUART: IT SURE LOOKS DIFFERENT THIS MONDAY MORNING COMPARED TO LAST MONDAY MORNING. IT’S LIKE DAY AND NIGHT.>>IT’S LIKE DAY AND NIGHT. LAST MONDAY MORNING, THE WORLD LOOKED LIKE IT WAS COMING TO AN END BECAUSE OF THE IMPOSITION OF THE MEXICAN TARIFFS. THERE WAS NOT THE FED TURNAROUND. YES, THINGS CHANGE RATHER DRAMATICALLY NOWADAYS IN THE COURSE OF A WEEK. IT SHOULDN’T BUT THAT’S THE WORLD IN WHICH WE LIVE AND HAVE

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About the Author: Oren Garnes

16 Comments

  1. Americans can't get any dumber…Trump created a problem he then retracts on the problem he created and everybody is acting like he did something great!…you're his puppets.

  2. Trump does this regularly. He manipulates the market every couple weeks, his big money buddy’s are making a fortune

  3. This festering turd is influencing the stock market and making himself richer with his antics!

  4. Ok so, the title says, Trump cancels Mexico tarrifs. But like not even a minute, the dude says '' we have active tarrifs on Mexico''
    FAKE NEWS

  5. The orange cutie might wan to get a colonoscollusionopy. Maybe the doctor can find the electronic chip the Russian implanted in him.

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