We are in an environment where the markets are heavily dependent on the news about tariffs. Trading algorithms are programmed to automatically buy S&P and NASDAQ futures every time there is a headline with the phrase “tariffs negotiations”. This is programmed using AI. In reality, this is AS (artificial stupidity). Tonight, one of the government officials said we will try to talk to China about tariffs in a near future. S&P futures went up by about 1% in 1 minute.
Meanwhile, the market is at the resistance zone we talked about a number of times. 550-570 on SPY. Knee jerk reactions will continue, and the volatility will remain high for months to come. The number one goal of the government is to provide stability; everything else is secondary. Are you feeling stable?
Dennis
