"U.S. companies doing business in China are the biggest winners from China-U.S. trade. The Chinese market is vital for many top U.S. brands, giving Beijing more leeway to play hardball in the trade conflict."
Tech gamblers didn't get the memo that the party is over. The last time Facebook was leading was right before Tech imploded two weeks ago. Deja vu of China deval circa August 2015, is it so hard to believe global crash could happen when U.S. policymakers are doing everything possible to make it happen? By all accounts, they're 80% finished - at least. It should be harder to believe it WON'T happen. But not in the Magic Kingdom.
Speaking of which, the world's first $trillion dollar company is now in the crosshairs:
"Apple has benefited from cheap labor and a strong supply chain in China and needs to share more of its profit with the Chinese people or face "anger and nationalist sentiment" amid the ongoing trade war, an article in the state-backed People's Daily warned Tuesday"
The S&P 500 is on the verge of making a new all time high, amid record divergences. Therefore, at risk of looking like a jackass sooner rather than later, below is my Elliott Wave count. This interpretation precludes a new high, so I stake my reputation on 20 S&P points. For those who say that tops are a "process" not an event, this process has lasted six months, hence the event is overdue. For the "grown-ups" who eschew chart patterns in favour of predicting where corporate earnings will be a year from now, I suggest putting away your Magic 8 ball and stop being a jackass already.
This game is called "spot the divergence".
Remember, VolPlosion in February? That was nothing compared to what is coming:
So far, the Nasdaq peaked six months after the S&P 500, the same day Facebook peaked:
Which is where this gets interesting...
This is Facebook with the Nasdaq 100 in gray:
The internet ETF is testing the 50 day from the underside:
Semis are at the same level as January:
Biotech also stalled at January levels
Zoom out on Biotech:
In other words, U.S. Tech is ready to join China Tech in August 2015 2018 smash crash:
Who is ready for the trade war death blow?
Getting back to Apple as a bargaining chip in trade war...
"Chinese companies in Apple's supply chain only get 1.8 percent of total profits created by the flagship device. People's Daily did not cite where it got this figure from."
They get their information from Bloomberg. Apple profit margins are ~20x higher than the sweatshop that assembles the iPhone:
Foxconn is the English name for Hon Hai:
"People's Daily wrote. "It seems U.S. companies doing business in China are the biggest winners from China-U.S. trade. The Chinese market is vital for many top U.S. brands, giving Beijing more leeway to play hardball in the trade conflict."
I would have to agree.
