A quick glance at the Trump-worshipping perma-bull website Zerohedge reveals the disposition of equity fans, which is an amalgam of invincibility, giddiness, high-fiving, and ecstasy about lifetime highs, tariff deals, and even the desire to say, umm, WOW.
It’s true that yet-another-surrender to China (the latest 90 day “pause” which will be followed by endless others) and a very modest tariff with the EU spiked prices all over the world. I would mention, however, as the /YM chart illustrates below, the ecstatic gap higher (left side) eventually burned up in the atmosphere. It’s actually pretty damned jaw-dropping that this enormous gift to the bulls is, at the moment, an empty paper box.
More shocking to me is what happened with FXI, China’s ETF. If you’ll recall, when the U.S. rose the white flag to Japan a week or so ago, Japanese equities exploded higher, and the EWJ was up about 4% or so. Yes, FXI did push higher on the news, but just look at it now: it’s a big wet bowl of rice noodles with a cockroach crawling across the top. Zilch.
I come into the day medium-aggressive, with a 98% commitment level. The good news for me is that we’ve reached the point that when even tremendous news is provided to the bulls, it just isn’t providing the gusto that it used to. This is going to be the last exciting earnings week, so let’s see how it all plays out by the end.
