15 Oct Trump and Manipulation of Stock market

I have been closely following and analyzing the timing of president Trump’s tweets regarding China, Canada, and Mexico.  I am convinced that they can be correlated to the artificial manipulation of stock market slumps that subsequently create inflated new highs. This is a major interference in the free market system that underpins liberal democratic economies.

One of the basic tools used by stock market experts is technical analysis. It uses specific formulas to understand the behavior of markets. Two of the most commonly used are the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). RSI is used to track when the market is overbought or oversold. It usually triggers a reversal of market direction and momentum. The relative strength of this signal defines the level of correction. One example of this is the Fed’s announcements of changes in interest rates. In my example, this is precipitated by Trump’s tweets on tariffs.

President Trump’s tweets relating to China, Mexico and Canada are perfectly timed to correspond to an oversold market position. It is quickly followed by another tweet in the aftermath of the market correction. As an example, Trump may tweet that he will increase tariffs on Chinese goods by 10%, which causes undue fears in the marketplace that can lead to a sell-off of vulnerable stocks.

This is a prime case of artificial manipulation of stock market prices that distorts the normal flow of market activities. Upon closer scrutiny, it becomes evident that this type of deliberate distortion is repeated over-and-over again. The explanation given may be that the Chinese president Xi has bowed to Trump’s pressure. Actually, this promotes an inflated upward movement in the market, creating a new, or testing a previous, high.