My posts over the last few days showed that despite Wall St indices breaking new records after records, the gains are narrowly confined to the selected few- namely FAAANG stocks. This chart below from Hussman's tweets shows the divergence that is happening- the blue line is the S&P500, the black line the percentage of stocks trading above their 200 day MA. In a nutshell, if the powers that be want to push Wall St higher, they just need to buy up the FAAANG stocks. Does the divergence suggest this rally is FAKE? With a lot of behind the scenes manoeuvring, I wouldn't be surprised as this divergence remains for weeks now.
Under Trump, politics and stocks are so intertwined - so that's why this thread dwells on Trump politics quite a bit . Is the US market fortunes now so beholden to Trump's continued stay in office? As the Americans say, You Bet because he had made it so and the market psychology has built around it.
I used many phrases in this thread and one which I said before- Wrong will remain Wrong for Longer
except it never does eventually.
