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Posted

There’s going to be some pain before it gets better. Some very good opportunities at the moment to get in during the dip. The real pain will happen in the Euro markets which will be a bloodbath.

Posted
15 minutes ago, LiamB80 said:

There’s going to be some pain before it gets better. Some very good opportunities at the moment to get in during the dip. The real pain will happen in the Euro markets which will be a bloodbath.

 

Lol he did use those exact words regarding the auto industry. The media however put a much different spin on that comment. 

Posted
2 hours ago, JK-Trilly said:

The S&P 500 index crossed below its 200-day moving average today, a very bearish situation for the markets, and it's still hovering at that level right now. After testing it during the previous two trading days, with that critical support level holding there at the 200-day MA, it finally broke through it today.
 

This might prove to be a triple bottom forming there at the 200-day MA, which would be a bullish buy signal, and with a chance for the market to reverse back up, but tomorrow’s likely weak February jobs report (unemployment data) could push the S&P 500 even lower.


A sustained drop below the 200-day MA is a sell signal for technical traders as the markets unwind and risk going into free fall. The last breach of this critical support area was over a year ago back in October 2023.

 

Trump might not really get it yet, but all of his self-destruct economic policies that he has launched, which are both inflationary, and causing unemployment to rise, could soon be coined as the “Trump Crash”. A situation that also could tip the economy over into a period of stagflation, which is a situation with high inflation, low growth, and high unemployment, all at the same time. 
 

Strap in Dorothy, cause Kansas is about to go bye-bye. 
 

IMG_9025.webp.75e6cbe189b6a088ddcaeca6b1e732d7.webp

 

The self-destruct economic policies have been going on for years. 

  • Haha 1
Posted
1 hour ago, LiamB80 said:

There’s going to be some pain before it gets better. Some very good opportunities at the moment to get in during the dip. The real pain will happen in the Euro markets which will be a bloodbath.

Look for for much volatility ahead.  Opportunities for sure, but be conservative and not greedy.

Posted

Yes.  I think it will be very choppy mostly lower for awhile.  But, his ego and legacy are important to him so at some point, he will take action to prop markets up.

In reality though at this point, the S and P is down only about 3% for the year. So, probably more downside coming. 

 

Posted
1 hour ago, bkk6060 said:

Yes.  I think it will be very choppy mostly lower for awhile.  But, his ego and legacy are important to him so at some point, he will take action to prop markets up.

In reality though at this point, the S and P is down only about 3% for the year. So, probably more downside coming. 

 


The S&P is down 6.75% from its high of 6,147 in early February, closing at 5,738 today. That entire decline has happened within the last 30 days, all since Trump took office.

 

The percentage drop itself isn’t massive, considering how much the S&P has risen over the past few years. What is significant, however, is when it falls below its 200-day moving average, which it did today for the first time in 16 months. A 20% drop is technically required to officially enter a bear market, but breaking below the 200-day moving average triggers a sell signal, meaning traders should exit all long positions. Long-term investors can ride it out, but at this stage, nobody should be going long in equities when this sell-off could still have a long way to go.

 

If the market falls much further, then the only way Trump could push the market back up after the damage he’s caused would be by pressuring the Fed to cut interest rates, but that seems unlikely. The Fed won’t be eager to cut in an inflationary environment, and once stagflation sets in, reversing the damage won’t be as simple as flipping a switch.

 

Trump was handed an almost perfect economic situation, inflation hovering around 2% and unemployment at one of its lowest levels in decades, around 4%. All he had to do was just leave it alone. Then he came in like a wrecking ball with his sweeping tariffs and laying off tens of thousands of government workers, and in just 30 days, he’s already inflicted significant damage. If things continue on this trajectory, he could be facing a full-blown economic crisis in a few months, one that he won’t be able to fix just by flip-flopping his position every 24 hours.

 

No president has implemented sweeping tariffs ever since the Smoot-Hawley Tariff Act of 1930, which was widely recognized as one of the major contributors to the Great Depression which started after the stock market crash in 1929. Every president since then has understood that tariffs don’t fix anything, they only break things in the system. He clearly has no idea what he's doing. Only a fool would start a trade war with its closest trading partners. Canada buys more stuff from the US than the UK, France, China, and Japan combined and the have already started making efforts to stop buying American products as much as possible. China is planning to do the same. 

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