"The Hindenburg Omen is a technical indicator that was designed to signal the increased probability of a stock market crash."
This week's volatile action post-Yuan devaluation is what's called a bull trap. And it appears to have worked great:
First, I leave to Trump to explain the "TINA" trade, which is predicated upon the U.S. having higher interest rates than the rest of the world, which he wants lowered immediately. He is bipolar: Manic Moronic:
Below is a long-term ratio of Tech Momentum to the S&P 500.
The junkiest stocks are now leading this "rally"
As long as Match.com doesn't roll over, this will all be fine...
Last month there was an article circulating around stating that the market was in a "gamma trap". Meaning that the market is highly sensitive to various news events. Over the past week we've seen that play out in spades. First, during the FOMC conference call last Wednesday. Again on Thursday when Trump escalated tariffs. On Monday, when China retaliated. And again yesterday morning when for no apparent reason the Dow dropped 600 points at the open.
"I want a weaker dollar"
The other major difference between October and now is that the October peak was a reflation rally, this most recent peak was a deflation rally:
"No one told me bad news is bad news"