With earnings season coming up, today was a good time to take advantage of the recent pullback in order to front-run what could be a blockbuster earnings season.

Earnings should be up more than 20% from the Trump tax cut, and that’s not counting any growth the underlying business may have in 2018.

Here is a table from Market Watch that shows the incredible earnings growth from Trump’s tax cut:

How tax cuts will impact earnings by more than 21 percent.

All of the trade war drama and the Democrats move to use Mueller and the FBI to try and impeach Trump, has pushed the market down going right in to an earnings season of the like we haven’t seen since the days of Ronald Reagan.

The mainstream media is claiming that Chinese Dictator Xi made concessions in his speech at Boao:

Mainstream media groups report President Xi said something he did not actually say.

That’s a lie. Xi punked the U.S. and said he would consider lowering tariffs on car imports only for countries who don’t engage in protectionism and trade tariffs. You didn’t know that? That’s because you didn’t read the Xi speech for yourself. Who can blame you. The main search engines are blocking the actual Xi speech translated into English. We might get an actual translation a month from now when the world is focusing on other things.

Now it could be that the mainstream media just got RickRolled, or China Rolled. Never gonna give you up, never gonna let you down. Never gonna give, never gonna give you up. Never gonna end my trade, never gonna close my door. Never gonna raise my tariffs and hurt you.

Go read the speech for yourself. Dictator Xi made it clear tariffs will only be lowered on car imports from countries that don’t have protectionist policies or engage in tariff practices of their own.

This China trade war issue is not over by a long shot so this idea that the market is rallying because Dictator Xi took a calming leadership role to diffuse tensions is a bunch of peacock advanced by the peacock network. And if Dictator Xi was such a good guy who was defusing trade war tensions, then why did he flame trade war tensions by filing a complaint to the WTO today over Trump’s global tariffs on steel and aluminum imports into the U.S? That’s right. The same day Dictator Xi supposedly gives a reconciliatory speech, he also filed a complaint to the WTO over our actions to save our struggling steel and aluminum industries that are on the verge of complete failure due to China dumping.

So Trump punked Xi back by tweeting: ‘Very thankful for President Xi of China’s kind words on tariffs and automobile barriers…also, his enlightenment on intellectual property and technology transfers. We will make great progress together!’ President Trump should have included a wink, wink, after the tweet as a message to his fan base.

Dictator Xi isn’t doing anything to make trade relations better. Xi has a history of deception and lying and so why would anyone intelligent think that this trend would suddenly change? Why? Because big bad Trump got tough with him and scared him, right. The Red Dragon is intimidated and scared by no one.

So as traders remember, it’s all a bunch of lies and these exogenous events are likely going to continue hitting markets and so don’t be blindsided by them because you get your news from the New York Slimes or some other peacock network like NBC.

I don’t like to get too much into politics because my goal is for us to make money from our insider political knowledge, but check out how Google and the mainstream media are reporting the latest in the Mueller story:

Mainstream media bias about Mueller investigation. Failure to report that Clinton took $25 million from the same people in Ukraine that paid Trump $150,000

Notice that they are not reporting that the same Ukrainian guy, Victor Pinchuk, gave $25 million to the Clinton Foundation and was even entertained in Clinton’s home.

News report that Clinton took $25 million from Ukraine.

So Victor Pinchuk gives Trump $150,000 for a 20 minute video conference, and Victor Pinchuk gives $25 million to Clinton and even entered the Clinton’s home and privately dined with her. But only the Trump donation is reported in the mainstream news and carried by Democrat backer Google. A complete fraud on the American people by Google and the mainstream media news. Talk about fake news.
So as traders, you got to be careful with getting your news from the mainstream media, especially when they start telling you why the market closed either up or down for the day. There’s about a 50-50 chance that what you are reading or hearing is wrong and has little to do with market action.

I think Dictator Xi could have made things worse by saying forget you to the US. That would have hurt markets. He didn’t do that so that was good. But let’s don’t drink the Xi Kool-Aid, or take the Xi-seng pills the media is pushing out.

Mark Zuckerberg testified before Congress today and that also set the stage for a market rally going into this strong earnings season. Zuckerberg relied heavily on AI as the solution to stopping bad actors like Russia from stealing personal information on Facebook users. This is one of the reasons I like semiconductors right now. Semiconductor firms are selling the AI chips Facebook needs to better regulate its platform.

Check out these semiconductor stocks. Intel has done a nice pullback to its 50 day moving average.

Intel stock chart

Taiwan Semiconductor is still a bit weak but it’s basing.

Taiwan Semiconductor stock chart

ASML Holding has done a really nice looking bounce off support as it retakes its 50 day moving average.

ASML Holding stock chart

Broadcom got beat up really bad but now a positive divergence has formed between large players volume and price. I really like that rising large players volume as the stock bounces off its February support.

Broadcom stock chart

Nvidia’s large players volume is taking off like a rocket ship. Nvidia is my favorite of semiconductor companies.

Nvidia stock chart

Micron, our ATM stock, is finally looking like a compelling swing long entry. The positive divergence on large players volume looks awesome.

Micron stock chart

Semiconductor stocks are all looking like the majority of the selling is done. Most of the Twiggs Money Flows though are still negative and so we’re buying when there’s blood still in the streets but that’s what we have to do to really make a lot of money on the next swing up in the market.

Mark Zuckerberg saw AI as Facebook’s way out of the mess that it’s currently in. Mark said that AI is already helping it filter out 99% of ISIS and terrorist posts and accounts. Within the next few years, Mark see’s AI expanding to filter out Russian election interference, racist hate speech, and more. Who would have thought that AI may just save Facebook, one of the largest corporations in the U.S.

Speaking of AI, the SOFI AI is on the cusp of moving into an overbought market rating so if you’re going to go long something, today was the time to do it before the SOFI AI moves into an overbought market rating.

What could derail things, at least temporarily, is Syria. Trump is stupid when it comes to foreign policy and false flag operations. The Syrian government, with the help of Russia, controls 90% of Syria and has won the war there which is why Trump is pulling U.S. troops out. The rebels in Syria heard of Trump’s intentions and so they crafted a chemical weapons attack, a false flag operation, to try and keep the US in Syria. You can’t say Russia is so crafty, sneaky, and smart, but then turn around and believe that Russia would snatch defeat out of the hands of victory by coordinating a chemical weapons attack against women and children. That’s so stupid that nobody really believes Russia or Ukraine is behind the chemical weapons attacks, except maybe Trump. Russia and Syria all but won the war, but now suddenly they do a chemical weapons attack against civilians which will draw world condemnation and a military response? Why? Russia and Syria have nothing to gain from such an attack. They already won the war and hold 90% of Syria. The only people who gain are the U.S. backed Islamic rebel fighters who don’t want the US to leave.

If Russia gets sick and tired of these false flag operations and US bombings, they may decide to strike back with shocking force which would tank markets. Syria is an exogenous event that you want to keep your eyes on.