I've been confidently anticipating the Mother of All Tops since, like, around 1975, but this week I decided to go wholeheartedly with the flow.
The result, technically speaking, is a robustly optimistic S&P target at 7644.50 (see chart below). This might not be what permabears want to hear, but it will leave bulls sufficient room to deal with their psychotic delusions once and for all before boom turns to bust. The rally would amount to 1600 points, or 27%, and come on top of an extraordinarily steep rally begun two years ago that has pushed valuations to near-record levels.
Some would say the relentless uptrend has discounted whatever miracles Donald Trump could conceivably produce for the economy. Putting that question aside, his bullish impact already on the mood of America cannot be underestimated. For starters, Trump's plan to dismember Deep State sounds do-able, especially if Republicans retain control of the House. Click here to read all about how heads are actually going to roll.
There is no precedent for taking on the embedded bureaucrats who have worked tirelessly for decades to wreck everything that is good about America. Sending these traitors to the gallows, so to speak, promises to be at the heart of Trump's domestic agenda. It will be interesting to see whether the ideologues who invent the news at the New York Times and the Washington Post eventually concede that Deep State even exists. They purport that it is a creature of right-wing paranoia, even though they have aggressively supported Deep State's reign of terror editorially for decades.
Term-Limit 'Bonus'
The President-elect's ten-point plan even includes full-on support for term limits. This issue should have become a bipartisan favorite, but for the fact that the left has been too busy hating Trump to get behind it. Now, it would seem, the years-long effort to add term limits to the U.S. Constitution will be unstoppable. Arguably, it has always been the single best way to keep influence peddlers from becoming entrenched on Capitol Hill, as they always have been. The opportunity for decent Americans to throw the rascals out is probably worth a thousand S&P points, so don't be shocked if Wall Street delivers that and more.
Rick Ackerman