It seems the market is now totally immune to trade war news. It just doesn’t care. The bombshell on Saturday that both the EU and Mexico would be slapped with 30% tariffs would have, in normal times, caused an historic crash? Today? Well, pre-market, equities (shown below with the /ES) are down maybe one-fifth of a single percentage point. Just. Don’t. Care.
Bitcoin, on the other hand, is soaring toward the moon. If you want to get a sense of what the future of the U.S. dollar is, just take a look at $BTC and you’ll see. It’s basically the upside-down version of this chart (without Altucher).
Oddly, fear seems to be coming back in, at least by way of the /VX futures. Since the quite sad 15-handle on the VIX last Thursday, we’ve at least got a pulse again with volatility.
And, a little longer-term, we might have hammered out a decent little top on the small caps, shown here with the /RTY.
Yet I am reminded of the opening scene in the original Star Trek movie, in which the Klingons are firing torpedoes into the mysterious cloud, yielding absolutely zero results.
Which leads to the kind of WTF moment I am feeling so acridly these days.
