As many of you know, Woody Dorsey (my partner) has been advising some of the largest financial institutions in the world for over 40 years. I had a conversation with him today and he said he is seeing a very similar pattern that took place during the 1987 crash, which he predicted 3 weeks in advance. That call pretty much set in a class of his own on wall street and he remains as one of the best market timers in the world.
In the video link below, I go over what has taken place as well as where we turned today and why it is important. Don't be fooled by this massive short squeeze. It is coming to and end maybe we are on the verge of a 1987 crash. Enjoy--G
Theoretically but the deal with China is not based on trade anymore if you follow the specific deal on the table. Trump is essentially saying China must no longer be a communist country. The chances of that happening is almost nil.
The Fed already saved the day. The latest market rebound occurred based on 3 consecutive rate cuts in the next year.
The only way the market trends up (again) is if two things that are unexpected occurs:
1) Fed cut in June (very unlikely and negligent if one does happen),
2) USA-China trade deal before July 1 (very unlikely).
W3rN0tAl0n3
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@zSplit, I agree with you- but remember how motivated this lunatic in the WH is and if he doesn't win re-election, he is facing criminal charges from NY state prosecutors (Statute of limitations runs out if he gets 2nd term) and if the economy goes down, the ONLY thing the guy has going for him, then he is toast, and he knows it. Don't underestimate the trickery and con-jobs this guy is capable of, even on a macro level, and he will manipulate the market just long enough to try and stay in power- I'm almost sure of it,
The only thing I question is at this point has he pissed off China too much to the point where they won't even meet with him at the G20 summit? It looks possible as the Chinese President has not even agreed to meet him; to go further, he threatened that no meeting = increased tariffs which only exacerbates the overall picture.
His major talking point was being tough with China, not necessarily making a deal with China. In my opinion, at this point, he has no choice but to stay the course. I see no deal happening until 3-4 months prior to their 2020 election until he may get desperate if his poll numbers are down, then he'll just sign any deal to take credit for "being amazingly tough on China and getting an amazing deal".
I see no reason for the market to re-reach or exceed record highs on any US index unless a Chinese deal is made, Fed drops rates this month, and June's job report is a complete rebound back to the 175-225k+ created. I just don't see any of these 3 things happening.