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See how Stephen made a 108% gain with the Wave Indicator
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Monday April 7th
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“If you want to tell people the truth, make them laugh, otherwise they’ll kill you.”
– George Bernard Shaw
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What a day already!
First off, multiple markets hit limit down or got close last night, including the Hong Kong exchange, China, and Japan.
We opened low, only for fake news to hit that Trump was going to issue a 90-day pause on tariffs. The markets rallied hard, then dumped again when the lie was exposed.
As I write this, we’re currently in chop city. Down about 1.9%. Obviously, the tariffs are driving this. Trump is attempting to rewrite the global economic order. The tariffs are extreme, yes, but sometimes, aggressive medicine is needed.
I’ve been listening to the pundits over the last few days. It strike me as funny, that they are good at diagnosing the problem, but they seem unwilling to handle a solution. Plenty of people have identified that America has been hollowed out for the better part of five decades at this point.
These pundits will hem and haw, declare that “Something must be done!” Only they don’t offer any solutions. Then Trump comes along, and breaks with neo-liberal economic orthodoxy for the first time since Nixon. And what do those pundits do?
Screech. Declare that this is a dumb decision. That there must be a better way. Only there isn’t. Or at least, no real solution has ever been tried. I find it funny that when the rubber meets the road, these talking heads freak out. It leaves one to wonder if their business model depends on problems that will never be fixed…or maybe, the donors who fund their business don’t want the problems to be fixed.
The truth is, something must change. There is no getting around that the American economy has been financialized. Manufacturing has been replaced with wi-fi jobs. I’ve benefited from this, as have many others. But is the cost to our society worth it?
I would argue that it is not worth it. We are standing at the crossroads of a civilization-defining moment. Which way America? Do we continue to see the middle class eroded? Become more unequal in terms of wealth and opportunity?
Or do we take dramatic action now, however daring, and try to right the ship before it becomes too late? Trump is taking the latter choice.
And the markets are trying to acclimate to this new regime.
The big question is:
Will China fold? In my opinion, they will. The Chinese economy is reliant on the U.S. I know that many will say we’re reliant on China, but in reality, our economy is so financialized that China has little to take from us besides cheap flat screens. China on the other hand is dependent on their exports to the U.S.
And they’re currently working overtime to stave off a depression. I think these tariffs will push China into a corner. The only thing I’m worried about is economic tensions escalating to tensions of the more ballistic kind.
I don’t have many stocks on the watchlist today. I couldn’t find many good setups amidst this chaos.
However, there is one that could be good…especially if military tensions do ramp up.
KTOS
After an enormous run, Kratos is bouncing against it’s 200DMA. I will be looking for the stock to either break below this for a put, or bounce up to go long.
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Testimonial of the day
Russ T. about the Wave Indicator:
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To Better Trading,
Alex Reid
