Paris pullout ‘Trumps’ tweets!

Irrational Trump

Yet then there’s the President’s Twitter activity. Even as President Trump had barely returned to the U.S. into the Memorial Day holiday last Monday, he could not resist getting back to heavy tweeting. This time it is on what he claims is the ‘phony’ nature of the investigation of Jared Kushner’s contact with Russian officials.

Whether that contact between Kushner and the Russians was normal, and importantly who initiated it, are moot. The fact that Kushner has agreed to cooperate fully with investigators should make it a non-story for now. And the President himself has retained some very competent counsel to defend him on all matters Russian (going back to the alleged election campaign collusion to influence the U.S. election.)

So what’s the big deal? Quite simply it is that the President is tweeting again. And in the past, that has triggered enough distraction to weigh on progress of the important Trump administration tax reform and infrastructure stimulus legislative agenda. And of course, the equities should be sensitive to any delay in that administration agenda due to the equities elevated pricing seeming somewhat dependent on the economic stimulus from the administration’s proposed reforms.

Curiouser and curiouser

And the ability to justify the Left’s negative view of Trump took a decidedly bizarre turn when the President posted what was obviously a partial tweet when he was already not very focused late in the evening. While we know that almost all of our readers have probably already seen it, it is worth repeating here…

And that was it very early last Wednesday morning, remaining up for six hours prior to someone at the White House noticing and taking it down. In addition to it not even being a complete thought, there was that ‘covfefe’, with nobody having any idea what it meant. And as we have noted consistently, this also called for the President’s team and colleague’s to explain and defend… a waste of time, which typically also diminishes their standing.

The most obvious case in point the press gaggle (an untelevised limited interaction with reporters) held by Trump Press Secretary Sean Spicer. He actually attempted to make it sound like the insiders in the administration knew what it meant. Just listen to this YouTube audio http://bit.ly/2rJkwLR of an MSNBC (no fans of Trump) posted recording from the gaggle, and be prepared to laugh as hard as the reporters at Spicer’s assertion.

And typical of Trump, once his team had gone out like Sean Spicer to explain that ‘covfefe’ actually had some meaning, he mocked the entire affair. His subsequent tweet “Who can figure out the true meaning of "covfefe" ???  Enjoy!” was obviously a bit of atypical self-deprecation that seemed intended to make fun of the affair. Yet that scuppered all of his team’s efforts to imply it had any real meaning.

 

Market Reaction

Yet it was obvious later on last Thursday afternoon that the Paris pullout "Trumps" tweets. Based on the U.S. equities accelerated push up from Wednesday’s June S&P 500 future retest of its previous highs (and front month futures all-time highs) in the 2,405-00 area, the equities must have liked the Paris Agreement pullout. And liked it a lot more than they disliked the President’s return to contentious and even seemingly irrational tweeting.

And even after Friday’s lackluster U.S. Employment report, it pushed up into the next extended weekly Oscillator resistance in the 2,430-35 area, with the next targets in the 2,465-70 range this week. It all speaks of a market that is less concerned with the Trump tweet-driven stall in the formal administration legislative agenda, and more so impressed with the President’s continued elimination of regulatory hurdles with pure executive action.

At least for now, that "Trumps" the (often misguided) tweets.

Thanks for your interest.


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