After two solid years of bluster, nonsense, misdirection, lies, and – – just to bring Joe Biden into the picture – – malarkey – – not one single paragraph, sentence, word, or punctuation mark of any kind of China Trade Deal has been signed. The only thing I’ve mentioned more frequently than “There Will Not Be a Deal” is the fact that I’ve said “There Will Not Be a Deal” before. I just want to be clear.
Anyway, over at the NATO fete, the most healthy and ingenious President in U.S. history declared practically within the same breath that things were China were “going very well” (whatever that’s supposed to mean) and that maybe it would make sense to wait until after the election to get a deal done.
In terms of financial markets, waiting until after the election is roughly equivalent to eight centuries. Of course, maybe it’s an ingenious move. After all, the Dow is – – in my opinion, and no, I’m not being dramatic for effect – – about 20,000 points higher than it really should be. Many of those points were created out of this vomit-inducing Trade Talk Optimism, which apparently the investing public is too blinkered to see through. So perhaps pushing the Dow to 40,000 on more lies and, dare we say it again, malarkey, is a great way to go.
For the moment, at least, the market is feeling a bit of a pinch (having reached the highest levels in history just yesterday morning):
Importantly, the breakout of the S&P bank sector fund, symbol KBE, looks ready to declare itself a full-fledged Failed Bullish Breakout.
As for myself, I am short 60 positions and am 229% committed. It could be an interesting day. And I’ll close with the song which begins every one of my days.