evening wrap, may 26
market vibes
The highlight of the session in NY was another all-time high in in S&Ps. Notwithstanding a torrent of bubble chatter on X, Elon Musk is considering merging SpaceX and Tesla into a $7,500,000,000,000 company (!!) which would be a gnarly problem for shorts.
Ken Paxton, a Trump candidate, crushed deep state Republican John Cornyn in a Texas primary this evening. I must say candidates supported by Trump have been doing well.
Iranian State Media said the regime needs $24 billion for a deal to get done. Trump and his entire cabinet are meeting at Camp David tomorrow to sort it out. This is getting silly.
In financial news today the Federal Reserve reported M2 Money Supply increased to 22,804.50 USD Billion in April from 22,686.40 USD Billion in March per the chart below. This is instructive. Imagine what inflation would do if M2 fell 500 billion between now and September. Or a trillion year over year. Thank goodness the FOMC is creating enough money to keep inflation rising while they consider hiking rates to fight inflation.
in the markets
Horizontal activity dominates everything but stocks…especially in oil and gold.
