“You know the duce is still wild” Tumblin’ Dice, The Rolling Stones
“For now, we expect the Trump administration will find other ways to impose tariffs.” Goldman Sachs
U.S. Court deals a card from under the deck causing market to surge after hours.
I didn’t know judges handed down U.S. economic policy.
If you can keep you head while all around you are losing theirs, you don’t understand the situation.
Rather than resolve things, I have a feeling this is going to cause more uncertainty and volatility.
It’s clearly not going to promote negotiations with other countries on trade.
Confusion over which tariffs are in force could throw U.S. imports into chaos.
If you’ve ever had to go to court you know that the administration can keep the tariffs in place while the appeals process runs through the Supreme Court.
Goldman Sachs says the ruling blocks the 10% baseline tariff imposed by Trump on most imports, but not tariffs on specific industries.
But for the moment the bears who rolled a hard 8 yesterday have craped out this morning in another round of
Wall Street Ready Fire Aim.
The DJIA hourly below suggests caution is warranted.
Sometimes you have to drill down to see what’s under the hood.
From the April 7 low you will see a small a b c within the context of a large A wave rally.
then you have a small a b c decline into the April 21st low which marks a large B wave decline.
A large C wave is required next if this count is correct.
C waves are vicious both up and down.
It looks like a 5 wave C wave culminated with the high on May 19th.
As we know that produced square-outs on the SPX with the Feb 19th high.
It is also ties to the anniversary of the NYSE in 1792 and the Lehman pre-crash high in 2008.
Following the May 19th top it looks like a small wave 1 down followed by a small wave 2 retrace.
Notice the DJIA has carved out a Head and Shoulders pattern in May.
Right ellipse.
This mirrors the Head and Shoulders in March.
Left ellipse.
The red line marks the right shoulders of each ellipse.
If this pattern is correct another surprise is on the table.
Miss FOMO may just turn into a Keno girl.