Some Things Never Change! By Todd Horwitz, Bubba Trading.

 



It was a pretty typical week in both the markets and in politics. The equity markets closed Friday on new all-time highs, but since the markets can never go down again that was to be expected. There was the sex scandal involving Jeffery Epstein, a buddy of Mr. Trump that led to the resignation of Labor Secretary Acosta because he played a role in having a reduced sentence for the convicted sex offender in 2008.

Another upset was that Iran stated that they are going forward with developing their nuclear program, and that they will no longer abide by the terms of the 2015 treaty. What a shocker that one was. The treaty was a farce and when Mr. Trump exposed it for what it was, Iran got upset and decided to continue to violate what they had signed but had no intention of ever following. I think that this one could end up ugly as Israel is not going to take this lying down. They have blasted Iran before, and they probably will again. Who knows where this lead if Iran will not back down?

And the biggest upset of the week was that Treasury Secretary Mnuchin warned congress that we are running out of money again and if the debt ceiling is not lifted, we will no longer be able to pay our bills. He sent a letter to speaker of the house Pelosi warning her that congress needs to address this issue before they go on break or that by the time, they come back we will have run out of money. Ms. Pelosi office said that it had contracted Mr. Trump and that they are locking horns over the new limit and the 2020 budget.

I can tell you how this one ends. Mr. Trump will refuse to raise the limit and adjust spending. The Dems will press to get the printing presses starting again. There will be the usual name calling, but in the end a smiling Mr. Trump and Ms. Pelosi will both meet at capitol hill and say that everything is good to go, They authorized another trillion dollar short fall and will continue to stay that course until we eventually bust out.

Finally, the Mueller testimony has been postponed to July 24th so the Dems have more time to line up ammo in certainly what will be the most covered news story of the summer. No matter what Mueller testifies to, the Dems will have to form more special committees to probe deeper into the investigation. They are not going to allow Mr. Trump one day of peace until they can impeach him in what could backfire if they are not careful.
So how was your week?

Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.