DRP Update – Wed 7th June, 2017

After yesterdays pullback of sorts it was more than possible that we would see a follow through.  And indeed there was one earlier today before it recovered into the close.  What is does next is subject to what happens tomorrow….

As the principal reason for today’s blog is that tomorrow is a rather unusual day.  There are four big catalysts remaining this week.  Three tomorrow and one on Friday.  Friday’s Monthly jobs report for May will be released at 8:30am in the morning and has a tendency to cause some fireworks.

However, this weeks focus is all about what happens tomorrow.  We have a rather important election happening in my old neck of the woods.  The UK goes to the polls to choose a new leader and if Theresa May fails and Labour gets in we will more than likely see a fall in prices.  If the conservatives keep power, we could rally, at least a little overnight on Thursday evening.

We also have the circus that is the Ex-FBI director’s testimony.  James Comey is in front of the Senate Intelligence Committee tomorrow.  That, I feel is the one that has the potential to move the market the most.  Significantly as it begins at 10am eastern time!

Lastly, and unless they change something, which is anyone’s guess, the ECB Rate decision will be released at 7:45am I believe.  So before the market even opens.

So, while I sit on a healthy gain, as always, there are thoughts of taking my latest 8%+ gain and running away from these possible freights trains.  I must follow the system no matter what I think is going to happen.

My own personal view is that the S&P 500 will pull back to 2420 at least before going higher.  And I expect that to happen tomorrow.  So, if I am right, we pull back early, and rocket to an new all time high tomorrow or Friday at the latest.

Bring on the bulls!

John