Trump Reloads Tariff Bazooka .... Divergence power

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Derek  11 Jul 2018

Morning,

International:
After another positive day in the US, Trump reloaded his Tariff Bazooka and markets slump in the East with his latest $200 billion new tariffs on China. You cannot say I did not warn you about Trump's actions.

It always amazes me that these announcements happens against resistance. See it on the graph of the S&P500.



NVIDIA Corporation is still ticking along nicely, not knowing what Trump was up to. The MACD is even crossing over with no other sell signals.



JSE Technical:
The Rand has been strengthening lately and I want to show how divergence showed the top again. I have not come across a more powerful signal than divergence with FrontRunner to show tops and bottoms.



I am reluctant to show anything else as markets must first digest Trump's latest moves.

In Analyst Expert we do have a column showing whether a share is in divergence, but I have found it much more powerful to watch it visually. The problem with the programmed one is that the period for divergence vary a lot, so which period must be used? Rather see the column just as a warning signal and then confirm it visually.

Enjoy your day.
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