Asian and European markets tanked (with panic selling in China) on Monday trading. I believe that automatic circuit breakers went off on the Tokyo Stock Exchange (TSE). This sets up the U.S. stock market for another lower opening (futures are already red with most of the indices down 3.5-4.5% pre-market). Quite sure we’re beginning to get into margin call territory for many (will see if trading halts and market circuit breakers start going off).
All of this is because of the idiot felon (and every single one of his enablers) that is in control of the U.S., weaponizing tariffs (this is willful destruction of economies taking place). The Republican controlled U.S. Congress could deal with this (since it is they who have control of tariffs), but that same Republican party is also complicit with allowing this to happen (willfully giving up their power).
This therefore isn’t fixing anything. All it is setting things up for is allowing the ultra rich to restock their portfolios again once the bottom really falls out. The ones who try to catch the falling knife now, are going to have buy often on the way down (expect markets to drop further because the washout of positions hasn’t even started yet where regular investors portfolios will be decimated).
Again, when I see 20-30% drops on the main indexes, that is when I know we are hitting that heavily negative sentiment. Plus I need to see the air come out of the AI play (that is like dot com bubble 2.0) since you have these folks trying to pump it so that they can dump it.
UPDATE: These reports about Ackman and Musk criticizing these tariffs; part of it is performative IMHO in terms of sending out signals to their ultra-rich associates on when to get back in the market in order to short term trade the volatility (and/or to cover short positions).
That $2.7 TRILLION market rally (from a rumor posted on Twitter about a pause in the tariffs) and sent drop once it was proven to be false, exemplifies how the HFT (high frequency trading) algorithm can whipsaw the volality of the market for short term trades of large amounts of capital (where even small percentage moves can yield significant profits) in a very compressed timeframe.
This tariff talk is being weaponized to provide these short term trading opportunites. What I haven’t seen yet is the actual capitulation and “wash out”. Then the entire consolidation process, re-testing support levels, etc. All we’ve had was 3 straight down days but with April 7th, recovering some ground after that rumor.
With that said, futures are up pre-market for April 8th while Asia and Europe are trading in the green because of talks that the U.S. will be having these tariff “discussions”. Yes, they are seriously falling for this ploy of trying to kiss the orange felons ass versus telling the U.S. regime to take a hike. He wants this in play and world leaders who aren’t pulling a Canada or China, are going to look weak in the process. These countries should be looking to cut the U.S. out of the global trade (weakening it in the process), and looking to increase it with everyone else.
