…“People somehow think you must buy at the bottom and sell at the top to be successful in the market. That’s nonsense! The idea is to buy when the probability is greatest that the market is going to advance”… Jesse Livermore

1. Trump Drops G7 Communique Endorsement — President Trump refused to endorse a G7 statement pledging to “fight protectionism and reduce tariff barriers,” saying trade among the G7 nations should be free of tariffs and other barriers. “Based on the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!”.
2. Trump, Kim Sign ‘Comprehensive’ Document — the meeting between President Trump and Kim Jong-un signed a “comprehensive” and “historic” document that included the following four points: Establishing new US-DPRK relations, building a lasting and stable peace regime, reaffirming commitments to work toward complete denuclearization and recovering POW/MIA remains. U.S. sanctions will remain in effect for the time being and American forces will not be reduced on the Korean peninsula.
3. Lithium Revival Across the U.S. — In North Carolina, Nevada and half a dozen other states, miners are working to revive the U.S. lithium industry, once the world’s largest until it fell off in the 1990s. According to Reuters, Piedmont Lithium (NASDAQ:PLLL), Albemarle (NYSE:ALB) and Lithium Americas (NYSE:LAC) all see opportunity amid a surging EV market and increased battery demand. The U.S. produced only about 2% of the world’s lithium last year, but has around 13% of the world’s identified resources.
4. AT&T prevails in Time Warner merger trial — U.S. District Court Judge Richard Leon has approved AT&T’s (NYSE:T) $85.4B purchase of Time Warner (NYSE:TWX) without conditions, giving the pay-TV provider ownership of cable channels HBO and CNN, as well as film studio Warner Bros. The outcome could spur a wave of deals in the telecom and media industries, as well as clear the way for future vertical mergers.
5. Fed Raises Interest Rates and Signals 2 More Increases Are Coming — the Federal Reserve raised interest rates last Wednesday and signaled that two additional increases were on the way this year. Jerome H. Powell, the Fed chairman, said the economy had strengthened significantly since the 2008 financial crisis and was approaching a “normal” level that could allow the Fed to soon step back and play less of a hands-on role in encouraging economic activity. The Fed’s optimism about the state of the economy is likely to translate into higher borrowing costs for cars, home mortgages and credit cards over the next year as the central bank raises interest rates more quickly than was anticipated
6. Latest AAII Weekly Sentiment — based on the latest Weekly Sentiment, the Bulls are on the offensive this week as AAII Bullish sentiment jumped to 44.78% from 38.93% last week, which is the highest level since mid-February.

While bullish sentiment spiked higher, bearish sentiment did not see as big of a move to the downside. As shown in the chart below, negative sentiment declined from 26.72% down to 21.70%.

7. New High Cumulative A/D Line Versus S&P500 — below displays the chart of the S&P500 ‘s underlying breadth which points to an eventual new high in price for the S&P 500.

The week ahead — Economic data from Econoday.com:

Tags: A/D High, AAII Weekly Sentiment

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