WASHINGTON – In our previous article, we discussed the demise of the Thomas Cook travel conglomerate. Today we’ll start with what’s really roiling markets this week: The Deep State / Democrat-led sequel to the Trump-Russia collusion non-scandal. Namely, the Trump / Ukraine fake whistleblower scandal. The Deep State and House Idiocrats just can’t let go of this nonsense. Hence, before our very eyes, we are witnessing the actual demise of a functioning Congress. Add the latest China scuttlebutt to this already confusing Ukraine mess, and you have… well, an even more confusing mess.
We’ll try to end this column on a happy note by mentioning how Microsoft shares seem at least to be holding their own during Wall Street’s current downward repricing of tech stocks. But first: the end-of-the-week political garbage that’s killing your stock portfolio. (And mine.)
Deep State Collusion with Ukraine? The House Idiocrats try the game again
Marketwise, it’s been heavy headwinds time for most common stocks, as the Deep State has managed to manufacture anti-Trump dossier #2: The Ukraine Sequel. This seditious nonsense was clearly another put-up job from the get-go. But the House Idiocrats leading the charge simply cannot accept that a rank, former Democrat political amateur thrashed them as a Republican presidential candidate in 2016. So they continue their ongoing efforts to cancel the voters’ wishes by whatever means they can gin up. Which, in this case, is re-treading an already failed fairy tale.
In point of fact this time around, these Deep State and House Idiocrats and their media lackeys are trying to play 3-D chess against Trump by misdirecting the electorate. Accusing Trump of “colluding” with the Ukraine to undermine their current Election 2020 frontrunner, the Idiocrats are trying to do a 180 on the truth. They desperately want us all to ignore the obvious fact that Uncle Joe Biden et fils were the ones threatening the Ukraine government with monetary reprisals if they didn’t get with the program by firing a prosecutor who was investigating the shady dealings of the younger Biden. Back when Uncle Joe was US Veep, no less. We even have this guy on tape admitting to the entire extortion racket he set up to benefit his talentless kid.
Some already speculate that the Deep State / Idiotarian left-wing cadre is actually trying to simultaneously take out both Trump and the too-centrist Biden with this two-edged tale of alleged treason. We’re not sure they’re smart enough to do this. But we’ll soon see. You’d think we were living in China.
Video proof fingers Biden, not Trump
Re: Biden’s guilt on this matter. Don’t believe us? Here’s a YouTube video of Biden bragging about his successful intimidation of the Ukraine government, which resulted in an honest Ukraine prosecutor’s immediate sacking, lest Hunter Biden get prosecuted for his own illegal dealings.
Obviously, this was all Trump’s fault. Again. Even though Trump was a private citizen at the time. George W. Bush can breathe easier now. Everything bad is now all Trump’s fault, not his. The torch has clearly passed.
The Deep State – with the assistance of the Idiocrats and #NeverTrumpers like the disgraceful Mitt Romney, preferred the election of corrupt Hillary Clinton in 2016. She was expected to extend the creeping Deep State / socialist attack on America after Hillary was elected to carry out Barack Obama’s virtual 3rd Presidential term. The elitist left steadfastly refuses to believe that a real estate mogul and TV reality show host thwarted their anti-American onslaught on the Constitution.
Sedition in The Swamp is now widespread
Led by a massive cadre of corrupt, left-wing Idiocrat lifers in DOJ, State and the “intelligence” community, the Deep State surveils the Trump administration 24/7 with an intensity of purpose that might be better directed at the Chi-coms and Iran’s mad mullahs. But these seditious jerks are completely deranged. So don’t expect any common sense from that quarter.
Congress has ceased to function as a branch of government, leaving us, our country, and Trump himself in a precarious position.
Ditto Wall Street.
And that is what has gotten markets into a tizzy this month, which tends to be a weird month anyway for investors. It’s bad enough that we’ve been forced to deal with a stock market that runs on largely fake headlines, not on P&L statements and technical charts. Today, one can get completely disoriented by the market’s complete lack of fiscal logic. You could say that over the past 10 years or so, the US stock market, too, has been “fundamentally transformed.”
The September-October curse is likely upon us
A free Stockcharts.com article recently posted by my old Decisionpoint friends, tells the latest tale of the headline-driven tape.
“The present short-term indicator deterioration is bearish, and the very overbought readings on our ITBM and ITVM suggest lower prices ahead. Currently, the trend of the markets is bullish, with all three of our trend models on BUY signals on all four large-cap scoreboards. As we know, moving averages can sometimes lag, so I wouldn’t get too comfortable.
“All-time highs are so far elusive for the major indexes. It is hard to remain bullish when the major indexes can’t make new all-time highs despite volume indicators (OBV, ITVM) logging new highs. Based on the indicators, price should continue lower despite the decline in interest rates.”
True to form, stocks are behaving badly once again as Friday trading action rounds third and heads for home at the 1 p.m. hour ET. First, someone somewhere (probably Iran) launched a rumor that the US and Iran had agreed to start making nice again and re-launch negotiations.
Oops. That means oil will flood the market again when the Iranians can sell it, so let’s dump oil and oil stocks. Oh, wait. The Trump administration categorically states this rumor is absolutely false. Boinggg! Oil reverses course. Sorry.
Near the noon hour, more China news. Word leaked from the White House that conversations were going on about blocking further US investing in Chinese stocks. And maybe even delisting them from US exchanges. Hold on to your seats! Down go chip stocks and all manner of Chinese stocks traded in the US, even big ones like Alibaba (trading symbol: BABA).
Just another day on the All-New Headline-Driven Wall Street Arcade. Don’t miss the next thrilling episode! Brought to you by the Deep State and the House Idiocrats who also brought you the Ukraine Connection.
Mister Softie offers some hope to traders and investors
Let’s try to end this Friday column on a moderately happy note, even as stocks swoon yet again for whatever reason financial pundits are pitching today.
Our feel-good story involves Microsoft (MSFT). Or, “Mister Softie” to those who enjoy punning on that company’s trading symbol. Right now, it seems to be the only tech company at least holding its own. That’s true even as the overextended tech sector continues to get battered by the bears.
Brace for some good news
Making the bulls happier, however, Real Money writer Bruce Kamich fired back in a Thursday piece.
“Microsoft Corp. (MSFT) [was] the Stock of the Day at Real Money [last] Thursday after its board approved a $40 billion stock buyback plan and increased the quarterly dividend by 11%…. Let’s check out the charts.
“[Via the MSFT daily chart], we can see two trends. First is the uptrend from late December to late July. The second trend starts in June as prices turn sideways and form a possible triangle formation. MSFT has crossed back and forth around the flattening 50-day moving average line since early August. The 200-day simple moving average line has a positive slope and was last tested back in late January and early February. MSFT does not look extended versus the 200-day line.
“The On-Balance-Volume (OBV) line has moved up with the price action and turned flat in late July, telling us that buyers and sellers of MSFT were in balance. The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line recently, which is another display of the balanced price action.
“Bottom line strategy:
“Investors and traders should operate from the long side above $140. The $155 area is the first price target…”
Cutting through the industryspeak, MSFT is holding its own and should go a fair bit higher once the current headwinds clear, likely sometime in the 4thquarter. We’re already in. But in this market, travel at your own risk.
– Headline image: Cartoon by Branco. Reproduced with permission and by arrangement with Legal Insurrection.