Still on the road...
Watching the various global indices, it's obvious that the markets are quite jittery. A single headline can move stocks up or down, depending on the news. It's very knee-jerk right now and not a good time to be taking positions, unless you're short some China-US trade and well-hedged.
The US and China are to going to work out their differences right away, so it's a good bet that President Trump's promised 10% tariffs on a wider range of imports will come to bear on September 1, which is just three weeks away.
In the meantime, European economies are looking very weak, with some countries on the verge of recession. Britain already announced a second quarter slowdown and more should be forthcoming from various parts of the continent. If Germany falls into recession, there will be a bloodbath in stocks and bonds yields could collapse even further into the negative.
All this suggests a global rout in the not-so-distant future.
It's been a hellish two weeks and Friday, August 9, is shaping up to be deadly for the long side.
At the Close, Thursday, August 8, 2019:
Dow Jones Industrial Average: 26,378.19, +371.09 (+1.43%)
NASDAQ: 8,039.16, +176.33 (+2.24%)
S&P 500: 2,938.09, +54.11 (+1.88%)
NYSE Composite: 12,828.82, +195.82 (+1.55%)
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