"We're finally here. It's like we're at the finish line [on a trade deal]. The stock market has to reconcile with the bond market how the downward trend is going to reverse on a trade deal. Bonds are not smoking the same kind of optimism pipe that stocks are smoking."
"By the time you get through all these meetings and Chinese denials, you already did harm to America's businesses and workers. This is the U.S. going back to the Obama and Bush era...we're setting up a mechanism which is very similar to past mechanisms where we failed to enforce our laws."
Where this gets "interesting" is that the largest weighted Dow stock is also the one that is most leveraged to a trade deal. Boeing, which is now 11% of the Dow - almost twice that of the next highest weighted stock - has been viewed as an industrial safe haven from trade wars. For what reason, I don't know.
In addition to weighting and trade leverage, according to NorthmanTrader Boeing is arguably, the "U.S. market's most dangerous stock" from a technical perspective.
He compares Boeing to Cisco circa March 2000 the Y2K Nasdaq top:
"Aerospace giant is arguably the U.S. market’s most dangerous stock, and puts the Dow at risk"
This stock is up 50% in two months:
Via the first article above:
"Traders are getting cynical about the China deal in the sense that they think what [Trump] really wants is a North Korea deal and he needs China to get that done. instead of getting a terrific deal with China he might do things that helps [Chinese President] Xi [Jinping] feel better about things," said Art Cashin, UBS director of floor operations. Cashin said a North Korea deal could help trump get re-elected."
What company is both a major commercial industrial AND a major defense contractor
Boeing
But is this really about one stock ready to implode?
No, this is about the last stock(s), overbought and overowned, imploding.
Because everyone is crowded into the exact same trades:
"Great minds think alike"
Fools seldom differ
