My Sunday video report made the point that the market and many leading stocks were starting to look somewhat late-stage. By Sunday afternoon, however, futures were rallying sharply after Treasury Secretary Steven Mnuchin went on cable TV with the line that the U.S. and China weren’t in a trade war, but rather a trade dispute. Keying on the positive semantics, the futures opened up sharply on Monday.
But, as I discussed in my Sunday afternoon video report, the move may turn out to be something that can be faded, as in short into. That turned out to be the case by Tuesday, when more of the same rhetoric got the futures moving to the upside again in the morning, but by the close the market reversed badly. NYSE volume was higher, while the NASDAQ Composite Index avoided a distribution day as volume was just a hair lighter.
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