Wednesday July 11, 2018
It appears stocks have topped for now. The DJIA has traded in 23,300 - 26,600 range since its top in January. Holman Jenkins has a good column on the growing trade war.
These lines caught my eye.
Mr. Trump is messing with a complexly arranged global auto manufacturing order that’s working pretty well for Americans right now.
His supporters knew this moment was coming. His virtues are also his faults. He relies on his gut. . He’s playing checkers. The world is playing chess.
His connection to his own administration (from which he often gets good advice) is tenuous. On trade (and Mexican immigration), the world has changed since the ’80s, when his sensitivities were formed.
the last line about sensitivities formed in the 1980s is probably right. And he notes the car makers themselves are against all this. But this event is providing reasons for the market to embark on its typical summer slumber.
BRKB
The MAs crossed to the downside in March and have stayed in sell mode since. Price is dropping even further below the blue downtrend lines.
Weekly BRKB
The FIB retracement level to 50-61.8% suggests 160-165 is likely support. and notice BRKB was negative throughout 2015. The 13 week EMA is just now about to cross the 34 EMA generating an official weekly sell signal. The two year rally 2016-2018 is now being corrected.
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