The Grind continues...4/7/2018
As I mentioned on 2/22/2018, I saw the market entering into a Grinding Phase of ups and downs. The premise for that idea was rising rates and the market's uncertainty on how that would impact earnings. Since earnings are still a few weeks away from starting to be released, we still have that over hang. But now we have Trade War rhetoric between the U.S. and China adding intensity to the Grind.
Frankly, I don't see this wave of ups and downs ending anytime soon. We should see amazing earnings being posted, which should send the market higher. But then we could have another shot fired from (or at) China about tariffs and the market could sell off. But if that does get settled, we will be getting ready for mid-term elections. And that should set us up for some more volatility.
I am of the opinion that this Grinding Phase can not end until we have certainty regarding the impact rising rates could have on earnings, how the Trade War rhetoric will settle out, and how the elections turn out. So, stay buckled up...this thing could last until November.