I’m of the belief that one reason stock markets smashed all-time high records this week is from the massive short covering going on that led up to the Presidential election on November 8, 2016.
You had billionaires like Warren Buffett and Mark Cuban suggesting that they took short positions in case of a Trump win. After all, a Trump win was supposed to crash markets according to the mainstream media. In fact, the mainstream media published false stories about when the market was down; Trump gained on Hillary, but when the market was up, Hillary gained on Trump. I wrote about the Trump vs Hillary false narrative in the mainstream media here.
Paul Begley says about this rally, “Are you seriously serious?”
Mr. Begley makes the excellent point that TPP was all about sucking jobs and wealth out of this country and redistributing it to this utopia dream of a one-world global economy.
Just within the last few weeks, we’ve seen Ford announce that they are not moving plants and jobs in the US to Mexico. Apple announced that they are looking into bringing some manufacturing back to the US.
I think some of what is driving the Trump rally is massive short covering caused from the unprecedented levels of propaganda in the mainstream media. Reflect on how many rich Hollywood people, musicians, hedge funds, money managers, and fund managers bought into the propaganda in the mainstream media that a Trump win would crash markets.
The reason I think short positions are still unwinding is because of the Twiggs Money Flow. Notice how the Twiggs Money Flow is rising at the same steep angle it was shortly after the November 8, 2016, Presidential election.
The Twiggs Money Flow is very sensitive to changes in momentum as a result of the end of short covering. When we see the Twiggs Money Flow form a negative divergence on the S&P 500, that will be our first signal that most short positions entered as a result of mainstream media election propaganda, have unwound.