There is No Need for a Government Shutdown

There is No Need for a Government Shutdown

There is No Need for a Government Shutdown

$DIA, $SPY, $QQQ, $VXX

Wednesday, the US stock market moved lower on come concern of a potential government shutdown and following a report that highlighted a disagreement between President Trump and Senate Majority Leader Mitch McConnell (R-KY)

Wall Street cheered Tuesday reports suggesting that White House aids and Congressional leaders have worked together to make significant strides in framing a tax-reform proposal

Senator McConnell said Wednesday afternoon that he and President Trump are “committed to advancing their shared agenda together and anyone who suggests otherwise is clearly not part of the conversation.”

Tuesday night at his Phoenix, AZ rally, President Trump put the possibility of a government shutdown on the table if he is unable to secure funding for his Wall along the US-MEX border and expressed his belief that the US will pull out of the North American Free Trade Agreement (NAFTA).

President Trump, called out the GOP elite Tuesday night, and signaled that they are in danger politically if Congress does not pass the pro-growth agenda that got him elected.

They got the message, loud and clear.

Wednesday, House Speaker Paul Ryan, (R-Wis) said he disagreed with President Trump in that he did not think a government shutdown was necessary to make sure a Wall was built along the Southern border.

“I don’t think a government shutdown is necessary, I don’t think people want to see a government shutdown, ourselves included,” Mr. Ryan said.

Read: the Wall will be funded by Congress, and the debt ceiling raised.

“Congress, in the House, has already done its work on the issue,” Mr. Ryan said. “There are very legitimate problems and concerns on the border that need to be addressed. The House already has passed funding for border security, including building physical barriers like a Wall in the places that are necessary.”

Mr. Ryan noted the House has passed some funding for the wall, but awaits support in the Senate.

“The fact is given the time of year it is and the rest of the appropriations we have to do, we’re going to need more time to complete our appropriations process, particularly in the Senate,” he said.

Congress will have less than two weeks to approve a budget when it returns to Washington in early September before the government’s current funding expires on 1 October.

Wednesday, the US major stock market indexes finished at: DJIA -87.80 at 21812.09, NAS Comp -19.07 at 6278.39, S&P 500 -8.47 at 2444.00

Volume: Trade on the NYSE came in lite at: 682-M/shares exchanging hands.

  • NAS Comp +16.6% YTD
  • DJIA +10.4% YTD
  • S&P 500 +9.2% YTD
  • Russell 2000 +0.9% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (0.24) Neutral (-0.09) Bullish (0.40) Bullish (0.42)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (-0.00) Neutral (-0.03) Neutral (-0.10) Neutral (0.12)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (0.22) Neutral (-0.09) Bullish (0.27) Bullish (0.47)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Neutral (-0.11) Bullish (0.26) Neutral (-0.23) Bearish (-0.38)

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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