Iowa + SOTU Address = Cover For Dead Cat Bounce

The events surrounding the first two trading days of February have been nothing short of interesting and entertaining.

Friday’s beat down of over 6o3 points, was almost completely reversed during Monday and Tuesday’s sessions.

Many are saying it’s because of the fiasco at the Iowa caucus supposedly won by Butthead Buttigieg in a razor thin margin over Sanders.

Or possibly it’s because the developers of the App – used to assure accurate voting results – was developed by several former members of the Clinton election staff from 2016.

LOL!  You can’t make this stuff up.

Either way the Sanders group is certainly “Feeling the Bern” right about now.

The talking heads were saying that the rise in the markets was in anticipation of Trump’s State of the Union Address last night.

As expected, Trump brought the house down.

The number of standing ovations at the SOTU Address was almost as annoying as watching Nancy Pelosi yawning in the background.

However, considering the madness of the ongoing impeachment farce, Trump seemed to hold back on getting his digs in against his accusers.  Instead he focused on what’s actually working in America’s favor.

Well done, Mr. President.  Well Done.

But is this all a cover for a Dead Cat Bounce in the market?

From our annoying acronyms column:

The Dead Cat Bounce expression goes: “If you throw a cat from the top of a high-rise building, when it hits the ground, it will bounce. But it’s still dead.” In other words, a bounce up in a crashing market may be deadly for your portfolio.

Word of caution:  Unless the market breaks above the January 17^th high (29,373) and continues up, we may be looking at a Dead Cat Bounce courtesy of China.

Read how China’s Kung-Flu virus could seriously disrupt The Most Hated Bull Market in History, in our February newsletter (HERE).