Declaring a lockdown is not an easy decision as President Trump and his administration needs to consider the ramifications it has on its economy.
Already, a painful lesson is smacked right into their face with increasing number of new cases as they started to reopen the different states. But, with only 4 months to go before the re-election, what else can he do ?
Biden slapping him hard and saying he has surrendered only adds fire to the fuel. With his polls plummeting, he has to do something. In fact, anything to continue propping the stock market.
He has seen first hand the number of unemployed cases and how much it has costs the government to give out a lending hand. With many businesses, large and small filing for bankruptcy, unable to pay rents and suffering from falling sales, job markets are hit hard. Businesses are retrenching and freeze or cutting wages just to keep their head above the water. This is temporary measures and IF a 2nd lockdown is to happen, it will crippled the already weak economy and that is definitely what Trump cannot afford to see.
Could Trump be pressurising the Feds to lower interest rates to negative ? This appears to be one of the last few cards that they have. From buying junk bonds to ETFs, the next available assets would be stocks.
IF Trump can get some positive news or actions from China on the trade deal within the next 2 months or so, that might not only props up the market but also give him the poll ratings support he desperately needed.
His mishandling of the Covid-19 cases resulting in one of the highest cases globally has tarnished his reputation, much to the delight of Biden who seized all opportunity to hammer him on it.
Chart wise, it could goes either way now. A breakout of the triangle and hit 3229 again or consolidate more before it breaks out. If the 3000 support level is taken out, we could see the price action revisits 2765 where it was at on 14 May 20.
Already, a painful lesson is smacked right into their face with increasing number of new cases as they started to reopen the different states. But, with only 4 months to go before the re-election, what else can he do ?
Biden slapping him hard and saying he has surrendered only adds fire to the fuel. With his polls plummeting, he has to do something. In fact, anything to continue propping the stock market.
He has seen first hand the number of unemployed cases and how much it has costs the government to give out a lending hand. With many businesses, large and small filing for bankruptcy, unable to pay rents and suffering from falling sales, job markets are hit hard. Businesses are retrenching and freeze or cutting wages just to keep their head above the water. This is temporary measures and IF a 2nd lockdown is to happen, it will crippled the already weak economy and that is definitely what Trump cannot afford to see.
Could Trump be pressurising the Feds to lower interest rates to negative ? This appears to be one of the last few cards that they have. From buying junk bonds to ETFs, the next available assets would be stocks.
IF Trump can get some positive news or actions from China on the trade deal within the next 2 months or so, that might not only props up the market but also give him the poll ratings support he desperately needed.
His mishandling of the Covid-19 cases resulting in one of the highest cases globally has tarnished his reputation, much to the delight of Biden who seized all opportunity to hammer him on it.
Chart wise, it could goes either way now. A breakout of the triangle and hit 3229 again or consolidate more before it breaks out. If the 3000 support level is taken out, we could see the price action revisits 2765 where it was at on 14 May 20.
Comment:
breakout and retrace. those who keen, can add long