Author discusses the TACO trade and Trump's negotiating style, questioning who bought SPXU and whether they sold, but offers no clear directional investment thesis.
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This place was such a bear the last 3 days, I have to believe a fair number of participants bought SPXU at the start of trading yesterday. I want to know who did, and if you were smart enough to dump it at the end of trading yesterday?
I laugh when I see the "TACO" trade. Like, by saying he chicken's out implies that you wanted him to stay with what he said. But it's just amazing to me that here we are 10 years after he first ran for office and people still haven't read or don't understand the art of the deal. Not saying you have to agree with how he does business. Lots of people don't. It's why successful people like Peter Schiff and Charlie Munger never liked him.
But if you know, you know that Trump loves nothing more than negotiating. He makes bombastic statements to see how people react. The US was never going to invade Greenland, but if he says that early on then nobody is talking about a Greenland deal. It's like the head of NATO said "I really believe you can be happy that \[Trump\] is there because he has forced us in Europe to step up, to face the consequences that we have to take care of more of our own defense."
And Trump likes to negotiate like he's trading with the Faberge Egg and you drive an old Corolla.