The whipsaw has begun. This is the most formidable and dangerous form of tape, one that cannot be analyzed or assessed for technical or fundamental attributes, but instead moves thinly based upon innuendo and veiled signs of news that may or may not be on the horizon. This is chicanery at its best, America trying to stem the flow of blood from markets and preserve our last refuge of dignity: capital markets.
The U.S. and China are said to be exploring a trade pact that would halt further tariffs from Washington in exchange for talks looking at major changes to Beijing’s economy policies.
Talks would center around a barrage of issues the U.S. has wanted Beijing to remedy, including intellectual property protections, the Wall Street Journal reported.
President Donald Trump and China President Xi Jinping are set to meet at a Group of 20 summit in Buenos Aires on Saturday.
Note that doesn’t mean current tariffs will be reversed. By my count, we’re already taxing Chinese goods in nearly their entirety. I’m sure we can find something else to tax, but the damage, more or less, has been done. What markets are running higher on now is optimism, Mr. Navarro heading to g20 discussions to spit in the face of President Xi. I think it’s notable that Trump canceled his meeting with Putin; but that’s more likely related to Cohen ratting and Mueller fixing to indict his son.
What does a pleb do here?
Nothing.
I’m 85% cash in my trading account, 10% in TVIX — hoping for darker times.
Staying true to my bipolar ways, I am 100% invested in my Quant, with GLD and TLT positions making up 10%.
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Trump doesn’t want higher oil prices and alliances designed to coordinate production cutting go against his wishes (wondering if Trump has an oil price he likes and what it is?). I suppose all the oil storages could be topped-up soon enough and for long enough to create major issues for some countries and banks.
Both Trump and Powell are now scrambling to recover from what has crept up on both of them, the downside of each of their approaches.
Trump has “over traded” his tariff position while Powell subscribed to the arrogance of the academic view.
It couldn’t be worse. Instead of at least splitting the out come of both of their chosen approaches with definitive guidance from either, they will combine to go 0 for 2, leaving the market as uncertain about rates and tariffs as it was when this week began.
Sad !
Ha, once again we’re thinking alike. I’ve got one stock I”m not giving up no matter what and TVIX. The rest is cash.