King Donnie Chumpski rides in on his pale green horse to save the day. It is a crazy week with bazaar price action. The huge rally to new record highs is on the Iran War hype. The SPX prints an all-time high at 7758.21 and all-time closing high at 7736.52 on 8/5/26 a historic move one for the ages. King Donnie must feel that he has his big boy pants on and can rule the world manipulating markets at will.
Trumpski stopped the military action against Iran on the weekend. Do you think he told his family and crony friends that on Friday? Of course he did. They made millions. It is called crony capitalism filth. Donnie said the Strait of Hormuz would open yesterday but the minute he said that everyone knew he was talking out of his butt, and he was. What is the need for bloviating every 10 minutes? The diarrhea of the mouth. But Secretary Bessent jumps into the ring and proclaims that a deal on the strait will occur yesterday or today. Oil prices collapse on the Iran War hype sending stocks to the stratosphere.
A drop in oil will help tame some of the ongoing Trumpflation and make Fed Chairman Warsh's job a bit easier. The Fed may not worry so much about runaway inflation to the upside since oil prices are dropping faster than a prom dress at midnight. Overnight, King Donnie decrees that a deal on the Strait of Hormuz will occur today. Do you believe it? Of course not. 10 minutes went by so he needs to bloviate again.
Iran plays dumb to it all and says they are actually near a deal with Oman to control the strait going forward. At the same time, the Red Sea is now a mess that Trumpski will likely have to address. It is obvious that Donnie stopped military action because Iran was going to blow up energy infrastructure and desalination plants (that provide water) in Saudi Arabia, Kuwait, UAE, etc..... Donnie flinched and that is not good for anyone's future. Trump changed the Middle East for the worse with the war adventurism. Arab states will now forever fear military attacks from Iran.
The path forward depends on the so-called deal details to perhaps be released at any time going forward. The orange channel at 7300-7600 held for months but price explodes up through like it was not even there. The diamond pattern was nullified. And the sideways symmetrical triangle that had the breakdown to the bottom channel rail at 7300, with more downside on tap, was nullified. Stocks were stick-saved by King Donnie having to stop military action due to Iranian threats against Middle East countries. Sounds like Chump may have lost the war despite the destruction to Iran?
Price jumps from below the standard deviation band to above the upper standard deviation band in only 4 days. That is wild and very rare price action. It is testimony to the Iran War hype controlling the stock market right now specifically the status of the Strait of Hormuz and now the Red Sea.
The chart indicators remain in negative divergence but you have to give it a couple-few days since this rally move is pure momentum to the upside and first, you have to see where it stops. Is the news priced in so stocks will be sold once the Hormuz deal is announced? Or will an even bigger rally to the upside occur when the deal is announced? Donnie created a mess and it is odd that the stock market is in party mode.
Traders and investors only focus on positive news and happy talk while ignoring any negativity. It is interesting and expected behavior at a major stock market top that has been trying to form since the end of last year. The dribs and drabs of AI and chip hype, spritzed in with Iran War hype, keep the party going. Another oddity was a big up day yesterday and the VIX was also up. Very bazaar. Also, is the frenzy of money rotating into and out of the top stocks such as AAPL to MSFT to AMZN. Strange stuff.
Oddly, the Keybot the Quant robot remains short. Figure that one out? Utes, commodities and chips are controlling the stock market technically right now, but it is of little impact since King Donnie's pending Strait of Hormuz big-time deal will dictate the path forward. Maybe Trumpski needs to talk to The Gambler to receive tips on deal-making. 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.
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