A mixed week with the Dow Jones up 589 points (+2.25%) and the Nasdaq down 24 points (-0.29%)
With the Dow surging to an all time high this week, so did investor sentiment. Let’s just take a quick look at a few interesting data points.
This strategist has the next move for this ‘buy-and-hold-no-matter-what’ stock market
Unfazed bulls are doing (another) victory lap this morning after investors drove a record-breaking day on Wall Street. China tariffs kicking in? Yawn. Brexit breakdown? Relax. Fed hike next week? The economy looks great!
Our call of the day from the Cracked Market blog’s Jani Ziedins says this is a “buy-and-hold-no-matter-what market,” though longer- and shorter-term investors might not have the same approach.
YES, YES. I remember this same kind of a mind set at 2000 and 2007 tops. They held long and strong until they all sold at the bottom in 2002 and 2009. But wait, it gets better….
Bannon: Trump Willing to Make Trade War ‘Unbearably Painful’ for China
As Chinese-US trade relations deteriorate, former White House Chief Strategist Steve Bannon said this week that those economic ties may get worse before they get better, since US President Donald Trump is willing to make the ongoing trade war “unbearably painful” for Beijing.
Trump won’t relent in the US-China trade war until reaching “victory,” the South China Morning Post reported Friday after interviewing Bannon. Bannon has been notoriously aggressive in his rhetoric against China for years. “We’re at economic war with China. It’s in all their literature… One of us is going to be a hegemon in 25 or 30 years, and it’s gonna be them if we go down this path,” Bannon told Prospect in 2017, referring to previous China policies he perceives as lenient.
What about “Unbearably Painful” for the US Mr. Bannon? Or we shouldn’t worry about it because the stock market is up? And it appears Mr. Bannon has a point. The stock market doesn’t seem to mind…..
Dow, S&P 500 records belie festering fear that China and the U.S. ‘are on a collision course’
Although on some level the stock market’s climb to new heights represents a growing conviction about the U.S. economy, outweighing the threat that a Beijing-Washington trade fight could morph into the sort of a bellicosity that could disrupt global economic vitality, on another level a number of investors can’t shake a sense of unease about the current trajectory of tariff tensions.
The above is just a small anecdotal sample of how bullish everyone else. There a many other technical indicators, such us RSI, Stochastic, Margin Debt, Volatility, etc…, that confirm the notion above.
All at arguably the highest valuation level in human history known as the “Everything Bubble”.
If you are concerned with this market, as you should be, and would like to find out what the stock market will do next, in both price and time, please Click Here.
