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Is The Bull Back, Or is it a "Bull Trap"?

Written by Staff Writer

Bull TrapIs The Bull Back, Or Is It A "Bull Trap"? -Zero Hedge
"With smiles and much back-patting to go around, the G-20 meeting ended with a 'roar of applause but the accomplishment of nothing.' Nonetheless, as I also pointed out, the market did reach extremely oversold levels during the October/November correction which provided the necessary 'fuel' for a short-term rally. All the market needed was a 'reason' and Trump’s weakened stance with China over trade provided just that....The good news is that on Monday the market cleared the 50- and 200-day moving averages...However, in order to be validated, it must hold through the end of the trading week....

If this rally fails sit will result in a continuation of the correction back to recent lows...Despite the recent oversold surge from lows, the primary backdrop of the markets has not changed markedly. The 'trade truce' was nothing more than that. China is not going to back off its position on 'Technology Transfers' as that is the key to their long-term economic future....The Federal Reserve is still reducing their balance sheet by $50 billion per month which has removed a primary buyer of U.S. Treasuries....Valuation remains extremely elevated despite the recent correction. The deterioration in credit is accelerating. Economic growth has likely peaked....There is little doubt the 'bullish bias' persists currently, and the volatility this past year has made managing money more difficult than usual. But that is the nature of markets and how topping processes work."