Twitter trolling Trump hits OPEC. In a tweet on April 20, 2018, Trump tweeted, “Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!”
A troll is a person who sows discord on the Internet by starting quarrels or upsetting people, by posting inflammatory comments that generally stretch the truth and are often just for the troll’s amusement. Yeah, that’s Twitter Troll Trump a.k.a. Black Swan Trump.
Folks, I like President Trump but not Twitter Troll Trump because he often tanks stocks either myself or my trading buddies are in. It just gets old after nearly 2 years.
Lots of oil stocks got hit today after Trump’s tweet.
The tweet itself is absurd and here’s why.
The U.S. shale industry is humming again because of the rising price of oil. U.S. rig counts have risen to over 800. Rig counts are up more than 120 over the last year since oil prices have been uptrending, creating lots of U.S. jobs. In fact, the U.S. will likely become the world’s largest oil exporter. The business communities in shale oil drilling areas that provide lodging and food for the oil workers also benefit like a ripple in water that is expanding outward. The State of Oklahoma even thanked OPEC (and by logical extension Russia) for cutting back oil production to boost oil prices.
The other big issue that Trump is failing to realize is that the world’s largest sovereign wealth funds hold oil. They are extended margin against those oil holdings. That margin is used to buy equities and assets around the world. This is why, when the price of oil rises, stocks tend to rise too. However, when the price of oil falls, it’s like a margin call going out around the world and sovereign wealth funds are forced into selling equities.
Let’s not even get into what Twitter Troll Trump said about China devaluing their currency when, as you know from the Saturday Show, it’s the U.S. that has been winning in the currency wars for the last 3 years.
President Trump has done some really good things for the economy. Twitter Troll Trump, well, he’s a Twitter Tsar so what do you expect?