Needless to say, the chart monkeys are struggling to get their footing. The S&P 500 closed 2.6% below its 50-DMA and 2.4% below its 200-DMA, but in an end-of-session stick-save it shinnied its noise a hair (o.3%) above the 50-week MA Maginot Line. That is, the market closed at 2696—eight handles above the last stop in the elevator shaft at 2688.
Of course, we have no doubt the robo-machines and momo traders will strain for the above mentioned 50-DMA and 200-DMA chart points just overhead; and probably next by plucking some morsel out of tomorrow’s jobs report that allegedly proves Goldilocks still has a pulse, thereby inciting some 11th hour dip-buying by the algos.
But we have a newsflash for the casino: Goldilocks doesn’t have much pulse. It’s all over except the shouting.
And the tell for that was the stunning stupidity of last night’s announcement that the CFO of Huawei, the world’s largest telecom company, national champion of the Red Ponzi and pride and joy of Mr. Xi’s politburo, was nabbed by the US sanctions cops while making a flight change at the Vancouver airport.
For crying out loud. This latest victim of the Washington sanctions gestapo, Wanzhou Meng, is the daughter of the company’s founder, who, in turn, is one of China’s most revered and Beijing-connected industrialists.
But this isn’t just an “oops!” The loathsome neo-cons twins—Pompeo and Bolton–sitting on Trump’s right side at the Buenos Aires dinner apparently didn’t tell him that she was actually being nabbed at the very moment they were slicing their steak.
After all, the Chinese have a thing about saving face, and this stunt literally ripped Emperor Xi’s right off his forehead.
Yet the real oops is not this one hideously stupid episode. It’s the whole sweeping, global-spanning sanctions regime that Imperial Washington has put in place over the last several decades.