Welcome to the New Year, filled with hopes and dreams of a renewed promise that used to be part and parcel of the American Dream.  I am very optimistic about 2017, but it’s realistic to know we are going to be tested as people, Americans, and as investors. 

On that note, we were tested last year, and tested back in 2008; those that didn’t blink are better off financially today.  However, circumstances are different this time around because the optimism isn’t manufactured in the idea that the government will save us, but that government will allow us to save ourselves.

I have worked on a major newsletter (ask your representative) all weekend, so this morning’s commentary will be light. The commentaries this week will be huge with news, culminating with the jobs report on Friday.  Meanwhile, all eyes are on the Dow Jones 20,000 watch; it is still a possibility this week, although I am watching key support of 19,500, which must hold or the 50-day moving average of 19,234 is possible. 

The best approach is to be prepared to buy weakness.

Today’s Session

Stocks are poised to open higher, although General Motors will be a slight drag out of the gate after a Donald Trump tweet sending the company an ultimatum. 

Donald J. Trump ‏@realDonaldTrump 

General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!

The tweet, coupled with the selection of Robert Lighthizer as US Trade Representative, underscores the new administration is gearing up for a major and bruising battle on trade.  General Motors has replied that its Cruze cars are made in Youngstown, Ohio and those made in Mexico are sold elsewhere.

Meanwhile, crude oil is breaking through a key resistance point as the OPEC deal continues to look sustainable.  If inventory trends continue to point to drawdowns, it could send crude substantially higher.