Vanilla XJO Thread, page-67

Two weeks of Trump plus a shortlived Deepseek crisis, and the XJO is at an alltime high. The XJO couldn't look less ripe for a correction. Go the bulls.

By Monday it should be clear what is going to happen with tariffs. Canada and Mexico will find out whether their new neighbour is nice or from hell. My guess is that there will be a threat of 25% tariffs unless the flows of immigrants and fentanyl are stopped. Maybe new automobiles will be taxed regardless. Whatever happens, the impact on the XJO seems likely to be small, unless Australian products get tariffed as well which seems unlikely.

China is slated for only 10% tariffs at most, which is probably not high enough to seriously damage the XJO.

So there doesn't seem to be enough to change the XJO from bullish to bearish. Unless Trump goes tariff crazy and imposes so many new tariffs that USA consumer prices will increase so much that inflation is bound to explode. Then USA markets would immediately realise that interest rates will have to rise again which could trigger a USA markets correction which could also drag the XJO down.

You don't need Deepseek to figure out that if the promised tariffs end up being minimised then there will be no holding the bulls. If the promised tariffs do proceed, then I think that markets will still remain bullish, although there may be a wobble or two.