One thing that bothers me a lot is that the equity indices have given back all of the "historic" one-day-wonder gains from Friday's low to Tuesday morning, which supposedly was a reaction to fantastic news that cooler heads are prevailing in the trade dispute between the U.S. and China. The likelihood of a down and dirty trade war has diminished significantly.
And for 24 hours-- Monday morning to Tuesday morning-- the equity indices went wild on the upside.
Since then, however, all that euphoric point gain has been relinquished, for some strange reason.
Relatively strong economic growth, strong earnings, healthy consumption, lower taxes, peace on the Korean Peninsula, better trade relations with China, a redress of all U.S. trade deals represent some of the fundamental and emotional backdrop for the equity markets.
In 2018, times are good, the news is better, yet the equity indices are stuck in the mud.
In 2008-2009 times were bad, the news was worse, and the equity indices rocketed.
Could it be that after 9 years, we are witnessing a mirror image of the post-financial crisis lows-- now that everything seems to be so much better and healthier?
Food for thought as we approach the final session of the week, the month, and the quarter ahead of a long holiday weekend... Have a great evening everyone. MJP