In the past few days, markets have been SPIRALING upwards. In fact, the average person feels GREAT about the economy, about his workplace, about his portfolio and about American dominance.

This happens to coincide with the most overbought stock market conditions in history.

As you know, as long as central banks keep lowering interest rates, there’s no reason to assume that stocks will crash in a major way or go sideways. Investors have ZERO alternatives, compared with the power of American businesses that are growing at a pace of 6%-8% a year, and pay dividends on top of it.

In the short term, though, Wall Street is SELLING and it will continue taking profits, so we might need to wait 3-4 more weeks for sentiment to turn bearish, before getting aggressive again.

Just look at the bullishness of Main Street America:

Courtesy: Zerohedge.com

Fundamentally, America’s economy is truly BOOMING. Many millions, though, still have NO CHANCE of joining the prosperous landscape, but advancements have been noticeable in the past three years.

For example, the bottom 50% of wage-earners have seen a 47% increase in compensation. That’s more than what the top 1% have enjoyed during the Trump era.

Many families have risen back to middle class status and many others no longer need food stamps.

Of the 60,000 factories that were either closed or outsourced in the past 20-30 years, 12,000 new ones are operating on U.S. soil and many more are planned or are getting built.

The USMCA, which replaced NAFTA (that cost America 25% of its manufacturing labor force), is forecasted to create 100K new high-paying jobs.

And, so, the problem is CLEAR AS DAY: Trump’s tax cuts, deregulation, trade negotiation, new legislation and aggressive initiatives are working for the private sector and unleashing the free enterprise system, but the DEFICITS are just STUPIDLY increasing.

You can see this disaster by checking out the debt/GDP ratio:

Courtesy: Zerohedge.com

In his State of the Union Address, Trump specifically mentioned that Washington will not default on its Social Security promises. What this means is that the government will have to RESORT to other measures to fund its ATOMIC national debt, going forward.

So, while 50 million Americans watched Trump’s speech and his approval ratings hit all-time highs, Wall Street is cashing out for a bit.

The big players did the same thing in February ‘17, January ‘18 and February ‘19. Computer Traded Algorithms and large funds move the markets; if you’re bullish, you are playing with fire.

Another sign that the mom-and-pop investors have gone BERSERK is this:

Courtesy: Zerohedge.com

Many “EXPERTS” have gone bankrupt or have caused other investors to LOSE FORTUNES, by pounding the table that TSLA should be shorted.

Jim Rogers offered up the best advice on shorting manias: markets stay irrational more than you can stay solvent. In other words, he has warned investors that fundamentals don’t matter in times of manias.

This isn’t the only sign of trouble. On Tuesday, I issued a trading warning on gold and it crashed just minutes later.

I still analyze gold’s sentiment as TOO-BULLISH:

Courtesy: Zerohedge.com

The S&P 500 companies are currently reporting earnings and seven out of ten are BEATING expectations. It seems like the economy is better than most believe it is, which is the reason that companies that focus on consumers are BREAKING RECORDS.

We’ve capitalized on this and will continue to cover this topic.

In his SOTU address, Trump also highlighted healthcare and the need to have a healthy country, full of educated citizens.

That’s a huge opportunity – millennials are the most health-driven generation in America’s history!