Testy Tuesday – Trump’s China Tweet Gives Us Weak Bounces

Thank you, Mr. President.

You can certainly fool at least some of the people all of the time as President Trump once again tries to fix the markets by tweeting out “Very productive conversations going on with China! Watch for some important announcements!” and that’s all it seems to take to ramp the indexes up 1% in the Futures.  Well, that and the coordinated cooperation of his fellow Oligarchs, who have their hands on the market switches, of course.  

The above quote is from March but there are about 100 tweets from Trump telling us how great trade negotiations are going with China, going back over 18 months and EVERY TIME it somehow boosts the markets though, after 18 months of China talks, the market is lower now than it was when we started! 

So let’s keep any sort of bounce today in context as we have fallen from 2,950 on the S&P (/ES) to 2,650 (and a quick spike below) so, with a 300-point drop, we expect a 20% bounce (60) to 2,710 (weak) and 2,770 (strong) and, so far, all we have is a weak bounce off the spike low to 2,600 – not that impressive.  Is Trump having trouble fooling even some of the people all of the time?   We’re back at the lows but the bounce lines are the same as they’ve been since October at:

• Dow 24,300 with a weak bounce at 24,800 and a strong bounce at 25,300
• S&P 2,640 with a weak bounce at 

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Provided courtesy of Phil’s Stock World.