Well, well - I have to thank Mr Trump for breaking the news that he's gonna raise tariffs on China about an hour before the open of the markets last night. The DJI and loads of other markets took a dive. I'm short of course, and trailing a 2H ATR trendline. On open of the markets there was a gap down of about 430 points. Never before have I seen anything like this on a Sunday night.
As usual the bulls did their thing, trying to close the gap but were beaten back badly up to this morning. This does not mean they won't come around again for another bludgeoning.
The bulls had of course been drunk over the last 4 weeks. They were pricing in hopes that the Fed would reduce interest rates. Powell delivered a nasty surprise. Then last night hopes that the China trade deal was coming to fruition got a shower of ice cold water. It's strange but not so strange that traders were gagging for the deal to come through. Reality was that for the last 6 weeks reputable sources knew that the deal was in trouble. Hey ho - I'm not here to stop anybody listening to or reading mainstream media.
My speculation is that Mr Trump knows or knew the deal is dead (or near dead) so didn't want that to hit suddenly on Friday (the big day) - as bad news on a Friday would cause catastrophic meltdown (either on Friday or the following Monday). So methinks the gave a heads up to avoid the bubble popping 'too suddenly' - if there is any such thing. Well, for Donald anything is possible! LOL
As usual the bulls did their thing, trying to close the gap but were beaten back badly up to this morning. This does not mean they won't come around again for another bludgeoning.
The bulls had of course been drunk over the last 4 weeks. They were pricing in hopes that the Fed would reduce interest rates. Powell delivered a nasty surprise. Then last night hopes that the China trade deal was coming to fruition got a shower of ice cold water. It's strange but not so strange that traders were gagging for the deal to come through. Reality was that for the last 6 weeks reputable sources knew that the deal was in trouble. Hey ho - I'm not here to stop anybody listening to or reading mainstream media.
My speculation is that Mr Trump knows or knew the deal is dead (or near dead) so didn't want that to hit suddenly on Friday (the big day) - as bad news on a Friday would cause catastrophic meltdown (either on Friday or the following Monday). So methinks the gave a heads up to avoid the bubble popping 'too suddenly' - if there is any such thing. Well, for Donald anything is possible! LOL
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus youtu.be/NjTdvALChwk ]
