It's very clear for those who are paying attention that the Fed and Trump are pulling an Elon Musk strategy, but on the entire stock market. Sometimes it even appears they are day traders watching technicals and then making moves based on charts. At a minimum they are micromanaging the market. Every time the Dow Jones seems weak, somehow bullish comments emerge by either of the two. Some Fed President puts out bullish verbiage or Trump tweets out that we are nearing a China deal for the 5th time. Similarly, Elon has posted timely tweets whenever Tesla stock was in key support areas or showing weakness. The $420 private buyout tweet is just one example. This type of behavior triggers huge short squeezes and its easy to do because whales have cornered the market. It almost feels as if the government and the Fed have become a hedge fund. They are gaining control of the entire market and who knows what kind of massive manipulation would happen if the Fed were able to buy stocks outright (they are working on that too). We are losing control of our free market and its happening in plain sight. This supposed China deal is being dangled in front of us like a large carrot in the face of a donkey. Even if there was a deal, the stock market has already priced it in. Imagine if it falls through. I keep hearing media pundits saying "The U.S. is the hottest game in town," but that doesn't mean much if there is global weakness. The reverse view could be that we are simply the least of all other evils.
Its time for people to wake up and understand that the economy is not anything near what is being portrayed. Trump and the Fed want you to believe a strong market equals a strong economy and its just simply not the case. While Trump has been making moves that stimulate the market such as lower taxes and relaxed regulation, little has actually changed with the economy itself. We are in a similar place to 2008. Trump is doing what he can, but has only been in office a short time. This is not Trumps fault of course as he inherited this mess. The market has already run up huge in the short time since he was elected. Growth remains slow globally and domestically. The Fed is really the main problem and it all started when Greenspan was appointed as Fed Chairman in 1987. His Ayn Rand philosophy of no regulation is a major reason the big banks were allowed to grow so powerful and crash the market in 2008. I am not a fan of over-regulation as businesses cannot thrive, but too little can allow Wall Street to run wild. There has to be a happy medium.
I want to be clear that I am fan of Musk as an innovator and entrepreneur. He has helped create some great services such as PayPal, Tesla, and SpaceX, but I am not a fan of the way he has participated in the Tesla stock manipulation. This kind of behavior hurts traders and investors alike and reduces faith in the company and markets. Elon has been through some tough times and put his own money on the line when Tesla was in trouble. This demands respect. And its understandable that he gets tired of the Twitter barrage of haters. But, trying to squeeze shorts for fun and operating Tesla with a ponzi scheme like model is unacceptable. My biggest complaint about Trump is that he is always so busy promoting, its tough to know what is real and what is being exaggerated. The economy being strong is an illusion. Government debt, corporate debt, student debt, credit-card debt, auto-loan debt, yield curve inversion, over-dovishness, and slowing growth are major problems. But an ever bigger problem is politicians and the Fed creating a false narrative. Sure some things are positive, but there are also a lot of serious problems that are being conveniently ignored.
Bottom line is Elon Musk, The Fed, and Trump are one in the same when it comes to using their reach to mislead in order to further their agendas. I do want to be clear that I respect the fact that Trump is going after the China situation. They have been taking advantage of us for far too long. But, we know he has always spun things as "yuge and wonderful." He is a master promoter and has done a hell of a job promoting the Dow up to the 26,000 range. Musk needed to get Tesla stock higher to use investor funds, Trump needs the stock market higher to tout the economy and help to get re-elected, and the Fed needs to keep the market up to unload $4 trillion in assets. Be smart and start taking some profits. I know due to recent market strength this is likely to fall mostly on deaf ears. It feels like the bull will never end just as it does in all bubbles. And that's always how people get caught. Regardless of how high the market goes from here, it's ludicrous and greedy to not do so. Trade the market, but take some green off of the table. Remember, use common sense and know that you don't have to buy into the baloney that politicians, media, CEO's, and Wall Street in general are working hard to sell you.