Good Monday morning. Late Friday night the administration took action to exempt computer and electronic products from China (from 145% to 20% tariffs), essentially caving to big tech (Apple, Nvidia) while leaving all other tariffs in place (the tariffs that affect small caps and small businesses). This had the markets expecting a possible “limit up” move higher at the open today, at least until Howard Lutnick appeared on a Sunday morning news show and declared that these exemptions (different buckets as they’re calling them) would be temporary only, a statement that was then repeated by the President.

On the news Dow futures have been as high as +425 this AM with Nasdaq +350. Importantly, 10 yr yields have dropped to 4.42% this AM with gold down $15/oz. However the US dollar has continued its sharp decline.

Note: I am the eternal optimist. The very last thing that we wanted to do was flip from bullish to bearish, to sell positions and be forced to disagree with the president on t...