"Tamagotchis of the World, Unite!"

All you need is a common enemy

Well, I’m glad China finally got themselves a Tamagotchi and that I finally figured out its reaction function:

“ HSI = 15,000 —> ACT!!!”

ie HSI below 15,000 is the Chinese Policy Makers’ pain threshold and they will have to do stuff to defend the Red Line.

Yesterday they came up with a $278 billion Stock Rescue Package.

And today the PBOC announced a 50bps RRR cut. That’s pretty big.

And another interesting fact: they announced it DURING market hours (They usually do it after market hours). That kinda proves that they care.

So yea they want to defend that HSI 15,000 line.

And commodities love it too. But that’s a different story.

(As a sidenote, I found it hilarious to see Wall Street monkey strategists come out yesterday and today to dismiss the actions as “too small”, “too late” etc etc only to see the market go higher with every one of their dismissals. Incidentally, they are the same strategists who were bearish US stocks at the lows and uber bullish US stocks at the highs so lets just put them in Monkey Bucket and ignore them completely).

Conspiracy Theory du jour

I’m not one to shy away from conspiracy theories so here’s something that dawned on me. What unites the Chinese Tamagotchi with Tamagotchi Yellen and frankly every other Tamagotchi in the World right now e.g like Tamagotchi Lagarde?

A common Enemy.

And who could that be?

Well, Lagarde said it openly at Davos: “Europe must be strong at home” and go on the offensive in the face of a potential return of Donald Trump to the White House.

So all these Tamagotchis are united by their fear of Trump returning in the White House.

So maybe there is an implicit Plaza Accord for Tamagotchis here, where they are all trying their best to prop their economies and markets so that Trump doesn’t get stronger into the Election.

Janet has shown them the way and they follow.

Bless.

Disclaimer:

This isn’t financial advice. This is the equivalent of reading MAD magazine but for finance but worse: This is the trading blog of a shrub.

Don’t be Stupid. Seriously. How many times do I have to repeat this ….