Monday, April 15, 2019

INDU or DJI Dow Jones Industrials Index Weekly Chart; President Trump Proclaims that the Dow Should Be 10,000 Points Higher Above 36,000!

President Trump continues to set up Federal Reserve Chairman Powell as the fall-guy if the economy and markets turn south. Of course King Donny will claim credit if the stock market continues rallying. All these politicians are the same be them demopublican or republocrat. On the weekend, Trump tweets;

"If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%...with almost no inflation. Quantitative tightening was a killer, should have done the exact opposite!"

The president references the Dow since this is the most-followed index by the public. The message is clearly directed at the broadest audience possible (think election). Trump will blame Powell if the stock market drops like a rock. That is the function of the president's ongoing harassment of the Fed head. If stocks tank, especially into the election, Trump will say he was the guy that fixed everything but Powell ruined it. If the Dow collapses 10K points in a major selloff and couple-year malaise, Trump will say he told everyone it would happen because the Fed made a mistake. Trump is creating a back-door exit plan. This is how the crony capitalism game is played in America.

President Trump loves easy money; he is a big proponent of goosing markets with easy money. Despite promises to lower the US debt, the debt blew through $23 trillion and running quickly higher. No one cares. The rich are too busy shoving money into their pockets. The Administration cut banking regulations and taxes that benefited the wealthy class. This was Trump's priority when he came to power since they are the ones that financially support his re-election campaign. Such is America's crony capitalism system. It is not rocket science.

Comically, Trumpster could have kept Janet Yellen, Queen of the Doves, at the helm at the Federal Reserve, and he would have had all the dovishness and easy money he wants. Trump decided to ax Yellen and go with Powell. He says he picks the best people. It was his decision.

The chart would show the range of 31.4K to 36.4K (+19% to +38% higher) that Trump says the Dow should be at right now but, humorously, the Trump targets are literally, off-the-chart. The ongoing triple-top pattern is interesting. As Keystone says, "If ands and buts were candy and nuts, everyday would be Christmas." This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.