TRUMP IS HALF RIGHT ABOUT RICH GUYS BETTING AGAINST THE STOCK MARKET—HERE IS THE OTHER HALF $DIA $DJIA $AAPL $AMZN $MSFT $FB $GOOG $GOOGL
President Trump said Wednesday that “so-called ‘rich guys’” may be “speaking negatively” about the stock market to profit from its decline.
Trump’s tweet came after billionaire investor Stanley Druckenmiller said the risk-reward relationship in stocks has never been worse. Trump didn’t identify Druckenmiller in his tweet, and there’s no evidence that the professional investor recently short-sold equities.
Trump is only half right. Let’s explore this issue with the help of a chart.
Chart
Please click here for an annotated chart of the Dow Jones Industrial Average ETF DIA.
Note the following:
• The chart shows that the stock market opened below the resistance zone in May, and that after repeatedly bumping against it, it failed to make a deeper penetration.