Due to the fact we have historically low short-term and long-term interest rates, I have been bullish the stock market for all of 2016. I have been looking for new all-time highs and we got them, but now I am looking for lower prices into mid-August.

I am looking for a better than expected Payrolls number on Friday. I am also thinking a better than expected Payroll number will put a September rate hike back on the table. Talk of a possible rate hike will keep a well overbought stock market under pressure.

Unlike all the perma-bears who are looking for a market crash and the world coming to an end, I am looking for a place to get long again. Please remember; when the Fed raises the Fed Funds rate from historically low levels to historically low levels, this is not long-term bearish. This is instead a buying opportunity.

Posted below is a monthly 30-year cash bond chart. This is the reason I think Wall Street will continue to head much higher. Wall Street has always loved low interest rates. A 30-year at 2.25% is trading at historically low levels.

I did an interview discussing my views with David J. Scranton which will be aired on Sunday, August 7 at 10 am Eastern Time. The show is The Income Generation. Here is the link to the site. http://www.newsmaxtv.com/

30-YEAR CASH MONTHLY