Thursday, March 22, 2018

Trump Giveth. And Trump Taketh Away.

The gambling class bought the tax cut and now they're selling the trade war. Unfortunately, there is no one dumb enough to be on the other side of that trade...

Risk aversion is following the sun. Technical damage is mounting with each passing minute. Global synchronized mega crash is approaching the rubicon.

What we notice today is that the largest cap stocks are weaker now than they were back in February. What is known as a "negative divergence"

Asia is being led down by Japan:

As I write, the Nikkei has gapped through the 200 day moving average, the key support line for the past two global crashes. I penciled in the current level on today's U.S. close:

Europe, which has yet to open, sits right at the crash support line:

For some perspective a wider view of Europe:

The world ex-U.S. with NYSE breadth:

Cramer correctly frames Trump's trade war in terms of the economy versus the stock market. Because that is the trade-off  in the short run. However, like all of today's frat boy pseudo-elites he's not bright enough to understand that a stock market can't exist without an economy. Because that's the trade-off in the long-term. 

He goes on to say that the gambling class are protesting these tariffs by re-pricing their own assets. Lower. He says that unfortunately the erstwhile middle class who lost their jobs to the stock market can't halt this decline because they don't have any money to put into stocks. 

I couldn't have said it better myself.