Posted on 10/01/2019 8:01:56 AM PDT by RummyChick
President Trump on Tuesday renewed his attacks on the Federal Reserve and Chairman Jay Powell, after a key U.S. manufacturing gauge signaled the second consecutive month of sector-wide contraction.
"As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!" Driving the news: The ISM U.S. manufacturing Purchasing Managers’ Index fell from 49.1 in August to 47.8 in September, CNBC reports. Any reading below 50 is considered a contraction, with Tuesday's figure marking the lowest reading since June 2009.
ISM Chairman Timothy Fiore said in a statement: "Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth."
(Excerpt) Read more at axios.com ...
It is really hard to trade with a POTUS that tweets at the drop of a hat that blows up your position.
If the president is right and we are at a disadvantage then why on earth shouldn’t he say so? Do you believe he is wrong?
In any case this contraction adds momentum to the argument for a further rate cut. Trump is simply trying to have it happen sooner and perhaps multiple times before the end of the year.
Let me give you an example.
Friday I was making a lot of money on a gold short when BAM..someone decides to leak info on China and banning stocks while i was peeling an egg....I was able to get out with a profit but not what it was.
Then over the weekend it leaks that it isn’t even true.
It is very very difficult to trade a tweeting Trump. I have started taking both sides of a position when it deals with China.
I honestly don’t think he should tweet things that could have a major effect on the market until after the close..but that is just my opinion.
You can get your face ripped off in trading when a POTUS acts like this..especially when he does it during market hours.
https://www.nytimes.com/2019/09/27/us/politics/trump-china-stock-exchange.html
I just decided to play both sides for the volatility
Maybe we’ll be into negative interest rates by next year :)
Powell is a disaster. I don’t even know why he was hired.
I don’t know why we have an entity like the Fed in the first place.
I am not up on all the JFK conspiracies but I think he was going to bust up the Fed.
I read that somewhere too. JFK didn’t lack enemies.
I read that somewhere too. JFK didn’t lack enemies.
I saw an interesting tweet from a hedge fund guy during FOMC week. He theorized that if Trump wasnt railing against the Fed on FOMC day then we would get a rate cut. He also said sell because market sells off when Powell speaks.
Trump kept silent. We got a cut. But Powell is such a disaster we also got a sell off.
Going to watch this next time to see if the holds true again.
You’re right about the trading.
You never know what’s gonna get said at any time :)
I still think China is just stalling until the election or what they think will be a successful impeachment.
So who knows what’s gonna happen?
Now you are, as Biden said, “Asking the right question.”
Just as long as things work out for YOU we’re good.
It started at the front end of the supply chain with China, South Korea, Singapore, etc.
It devastated the Eurozone, especially Germany, Italy, and France.
And now it arrived here. Manufacturing production growth has been falling and industrial capacity utilization has been falling, all confirming the signals sent from the front-end of the supply chain.
I speculated months ago that this was a result of President Trump realigning the global supply chain as he renegotiates trade agreements, and that things will settle down once the situation stabilizes in the manufacturing countries that orbit China.
-PJ
It is so prevalent that many in the market think he is insider trading.
Of course, I would think that if it was Clinton.
I just think he doesn’t think or care about how skittish he makes the market.
It’s not just about me
They have an incentive to wait. Congress does a disservice by creating this chaos in many rippled ways
Yep
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