The biggest global IPO fiasco since Alibaba (2014), just put a short-covering bid under China Tech and ignited a global rally. Which will have the shelf-life of a rotten banana...
The narrative of the day is that trade wars are an excellent buying opportunity. Because in the land of bailed out con artists, really what else could they be?
Meanwhile, the Russell 2000 small cap index is leading again on the premise that the riskiest stocks are the safest place to hide in a global trade war. Why? Because that is what they've been taught to believe:
"The safety trade has been to go to small-caps, which are much more U.S.-centric"
The Russell 2000 trade is one of the most crowded trades in the world"
Within small caps, the riskiest of risky stocks are leading:
And Utility stocks are playing catch-up at the end of the cycle:
As did Transports, now rolling over again as global growth turns back into a pumpkin:
Trade wars are the wrong kind of wars for the Military Industrial Complex...
"Despite Xiaomi's challenging debut, Reuters notes that Hang Seng -- the Hong Kong stock market index -- was 1.7 percent higher."