Trump's Tariff Pin, Class Acts, Sell Bitcoin Short ETF SBIT
Yesterday I commented a relief rally would not surprise me today. Markets are trying as they opened way lower than rallied into the positive and are back down again as of this writing. We will see where the day ends. This morning the S&P 500 dipped below my 5,000 watch out level and is flirting with the bear.
This sell off should be no surprise to readers here. I have been warning of a bubble top for months. In my February 27th Outlook for 2025 I had in bold letters. “Markets are now positioned for another historic bear market and/or crash.” Than in bold red letters I said, but as far as general equities, raise some cash and also sell Crypto.
This pic is Trump's tariff levels along with what he says tariffs other countries are charging the U.S. Again this should be no surprise, everyone should have known this was coming months ago. In my February 12th issue I commented right off - “The changes under the Trump administration are going to be very disruptive and there will be short term pain. I also commented many times that the market was a bubble looking for a pin. This here below is the pin.
The largest U.S. trade deficit is China at $270.4B, European Union $213B and Vietnam $113.1B. Taiwan, Japan and South Korea in the $60B range each. These are the big ones and where some kind of trade deal needs to be worked out if the country and markets can avoid most of the carnage.
In comparison, Canada is at $54.8 billion trade deficit with the U.S. and that is mostly Oil. The way oil prices are dropping, will be a big help to the trade number.
As I mentioned, Trump is using tariffs as a negotiating tool and it might work. In an interview with ABC News “April 6th,” Kevin Hassett, head of the White House’s National Economic Council, said that “there are more than 50 countries reaching out and trying to negotiate this new status with the president” since the tariffs were announced.
While Hassett did not say which countries have started talks with the administration, President Donald Trump wrote on social media platform Truth Social on April 4 that Vietnam’s top leader said the country would reduce its tariffs on the United States “to zero.” If this become reality, one of the big trade partners is resolved.
My suspicion on margin calls causing gold sell off, was confirmed somewhat by the Financial Times reporting yesterday that: the re-emergence of tariffs under former President Donald Trump has produced the most severe round of hedge fund margin calls since the early stages of the COVID-19 crisis.
And while everyone's blaming Trump's tariffs, that's only the pin that pricked the bubble that was getting extreme for months. I mentioned a number of times that the strength in the Trump rally in markets surprised me. We know now it was totally wrong and how did Wall Street get this so wrong?
Wayne Gretzky, Canada's hockey legend has received a lot flack and hatred because he has visited Trump at Mara Lago and Trump has praised Gretzky. It is very sad what is happening just because of a person's political view. Society has stooped to new lows but Gretzky is a class act and he proved again last night.
Ovechkin broke Wayne Gretzky’s record by scoring his 895th career goal in the Washington Capitals’ game Sunday against the New York Islanders, beating fellow Russian Ilya Sorokin on a power play with 12:34 left in the second period. With the excitement of a child, the 39-year-old belly flopped onto the ice as tens of thousands of fans around him cheered and chanted, “Ovi! Ovi!” while teammates streamed off the bench, mobbing him in celebration.
Gretzky was at the game to personally congratulate Ovechkin. Truly a class act. Ovechkin is Russian and truly a class act as well. In a previous game on Friday night against Chicago he scored 2 goals, but refused to goal on the ice when Chicago pulled their goalie. He did not want to set the record on an empty net, a class act.
Bitcoin short ETF SBIT — - — Recent Price $14.10
Entry Price - $12.75 - - - - - - - Opinion - sell
Bitcoin hit new lows very early this morning in it's current bear market. I am selling the SBIT short etf around $14.10, for a $1.35 profit.
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