Trump Stupidity Implosion…

What if Trump Stupidity overtakes Trump Hype. Back in in the January 13 to 16 period our Climate Tech Model removed short hedges. That seemed ok until today. now the broad market is back into that hedge lifting price zone.

We view the market action of the last couple of days as kind of a trial run for the Big Crash that is projected for later. Consumers and an isolated America are key factors. There is a risk that the Big Crash comes sooner rather than later but I think a Trump hype play comes first, there are a lot of possibilities, I won’t list them, just use your imagination.

Three charts show a picture of what has happened to the Trump Premium since the election and the early part of the planned 100 days of chaos.

The first chart shows Europe Stoxx vs SPX with Stoxx rallying big time since November 25, Europe does not have the problem of having Trump in house.

The second chart shows Financials vs Consumer Discretionary. The Consumer is not convinced that Trump is a plus.

The Third Chart shows the implosion of the Fat Cat sector, KKK+BLK+APO vs the broad market. This is where the biggest Trump believers have been hiding.

One thing to be aware of in all this however, RSI numbers in the three charts would imply that the implosion of the Trump trade is about over, and the Hype Trade is set to begin.