Friday, August 23, 2019

Elliott Wave Stock Market Update - August 23

Just as the TA had turned positive, Trump threw a temper tantrum today that changed all of that. Stable genius is upset the Fed is cutting rates when they feel like it (and not when he wants to) and China retaliating for tariffs he imposed on them. This sent markets into a steep sell-off and critical support at 2822 might break early next week, which could cause the type of selling we haven't seen in months. China's tariffs are on US oil, which hits Trump's political base. And the more he keeps at it, the less China will buy from the US in general, which hits many states that got him elected in the first  place. Trump should be smart enough to know (I have some doubts about it) that he will lose 2020 for sure unless he produces a trade deal and manages to convince the Fed to lower rates but attacking the Chinese president and Powell is not going to produce the results he wants. The guy is literally a man-child. I was thinking of jumping into the market briefly but after all of this today, I am putting all my cash in a 9 month CD.

Have a great weekend!

Short Term Trend = Bearish
Medium Term Trend = Bullish
Long Term Trend = Bullish

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking

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