Click headline, get article telling us about the new trade cheer.
U.S. stock futures climbed early on Wednesday as investors took cheer from a report that Beijing and Washington are still working toward a phase one trade deal, offsetting fears of a delay sparked by President Donald Trump’s comments on Tuesday.
Lesson #1,759,612 about tune this stuff out! Or at least don’t react to it as a major factor in decision making. Inflammatory news items almost always burn off their efficacy within a day or two. I’d say that it’s the realm of day traders, but how many of them (many of whom are momos seeking that extra tick before selling) actually get screwed by the daily whipsaw? I’d bet a fair amount.
It’s tempting to react, especially if like me you have a bias against the stock market and all it has represented since Bernanke took beneficial policy making off the charts and into the Outer Limits beginning a decade ago.
“There is nothing wrong with your
television set[market signaling]. Do not attempt to adjust the picture[ratios, indicators, free market inputs]. We are controlling transmission [of the signals you receive]. If we wish to make it louder[more bullish], we will bring up the volume[bond market manipulation]. If we wish to make it [the economy] softer, we will tune it to a whisper[back away from bond market manipulation]. We will control the horizontal[short end]. We will control the vertical[long end]. We can roll the image[yield curve], make it flutter. We can change the focus to a soft blur or sharpen it to crystal clarity. For the next hour[Along the Continuum’s decades], sit quietly and we will control all that you see and hear. We repeat: there is nothing wrong with your television set[market signaling]. You are about to participate[have been participating] in a great adventure [since Greenspan took over and first began to defile the Federal Reserve at least, although real conspiracy theorists would say since Jekyll Island]. You are about to experience[have been experiencing] the awe and mystery which reaches from the inner mind to – The Outer Limits [for some time now and don’t expect it to change any time soon.]”
Yesterday we reviewed the parameters on an up trending and completely intact US stock market (SPX). Today, at least in pre-open (US), the headlines will seek to jerk players in the opposite direction, as has been the case all along the trade war’s magical mystery tour into economic Wonderland.
Casino patrons turn to the right! Beep beep.
There’s a brand new dance but I don’t know its name
That people from bad homes do again and again
It’s big and it’s bland full of tension and fear
They do it over there but we don’t do it here
Turn to the left
Turn to the right
We are the goon squad and we’re coming to town
Beep-beep Beep-beep –David Bowie
President Donald Trump said Wednesday trade talks with China were “going very well,” a day after saying it could take until after the 2020 elections to seal an agreement. Trump’s statement came in London, where he and other NATO leaders are attending a summit. U.S. stock futures ESZ19, +0.38% climbed early Wednesday after a report that the U.S. and China are continuing to work toward a phase-one trade deal.
Okay, now it’s just getting too damn predictable. I’d have preferred a test of SPX 3030 before ole’ Donny lost his nerve, but whatever.
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