News that the US was holding back initiation of new tariffs against China hit the market unexpectedly this morning like a thunderbolt to the ground.
The S+P 500 immediately rallied 60 points literally straight up in a matter of minutes on the news putting it once again back above 2900. This move is technically significant,and bodes well for the bulls if they can hold it.
Today's sharp immediate rally is a vivid reminder,that in this age of in seconds market response to news shorts must have a STOP on the books at all times, to protect their bank.
I am quite sure that the damage done to shorts this morning, will cause them to think twice, before initiating new large new short positions anytime soon.
Once Burned. Twice Shy. No one ever said the stock market was not, a very risky place to park your money for a long time.
Today was simply a day to cover for shorts manipulated by the Trump administration. There's no question people in the administration are manipulating to hell. All of a sudden they realized that consumer electronics will be covered by the tariff and impact Christmas shopping? Please lmao. The closer we get to 3000 or if we re-test ATHs, the faster we come down in the Fall time.
This market will rotate between bull and bear, but in the next few months, the trend is down in a hurry.
1) Rates going to 0.
2) Economic data falling; European data showing recession; Asian data showing recession.
3) 10yr/2yr USA treasuries almost inverted. When they happens, look out for a MASSIVE algo sell off. Dow will drop 800-900 points easy when they invert. Guaranteed.
4) Negative rates around the world; Negative yields.
5) Chinese HK geopolitical issues.
Even after a good day today, treasuries barely gained ground at all. Today was yet another fake bull [trap] day as we saw many times over the last few weeks.
Gold and Silver are still far too high (even though they corrected today) if this was a new "bull" run. If it was a new "bull" run, Gold would be back in the 1300s and Silver back in the 13s.
Sentiment will do a 360 once again this week or next week and give up all the gains when the focus changes to economic data around Europe/Asia and the geopolitical issues in HK. Not to mention, if China doesn't "show-up" in September for trade talks as they have said already, will easily give this all back in the next 2 weeks.
bkidd7
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@zSplit, Looks like it might be given back today. LOL. Folks are done believing all the jibber jabber. Sounds like the inversion happened also. Down we go.
xCal
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Bart simpson pattern as the crypto enthusiasts say.
bkidd7
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It won't take long for the China talks to blow up again. It's getting too close to the election next year for China to give in on anything now. Maybe the Fed talking heads can keep on jabbering and make everyone feel good, but they don't actually meet for a while. QE Earnings winding down. Not many other tail winds out there currently. It's likely the bears will take it back down soon.
Leree123
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So far shorts crushed and burned but this rally seem to have it's limits. Tomorrow news will remind us that although tariffs impact might be postponed there is more and more evidence of upcoming recession, inverted yield curve is almost a fact and yet another big bank is flashing red flags on economic downturn.
Surfing those waves of new seem to be bit harder then expected.
I agree that 2900 level was saved by the bell and seems to become significant.
That said there is still room for some more upswing move based on both fibo and H&S pattern that I believe is building up. But anything above 2940 is bad news for shorts.
This market will rotate between bull and bear, but in the next few months, the trend is down in a hurry.
1) Rates going to 0.
2) Economic data falling; European data showing recession; Asian data showing recession.
3) 10yr/2yr USA treasuries almost inverted. When they happens, look out for a MASSIVE algo sell off. Dow will drop 800-900 points easy when they invert. Guaranteed.
4) Negative rates around the world; Negative yields.
5) Chinese HK geopolitical issues.
Even after a good day today, treasuries barely gained ground at all. Today was yet another fake bull [trap] day as we saw many times over the last few weeks.
Gold and Silver are still far too high (even though they corrected today) if this was a new "bull" run. If it was a new "bull" run, Gold would be back in the 1300s and Silver back in the 13s.
Sentiment will do a 360 once again this week or next week and give up all the gains when the focus changes to economic data around Europe/Asia and the geopolitical issues in HK. Not to mention, if China doesn't "show-up" in September for trade talks as they have said already, will easily give this all back in the next 2 weeks.