iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,111 Blog Posts

Trump: China Trade Talks Are Going Very Well

Futures are +200 and some will suggest it’s because of tweets from the President about China trade talks. But they’d be wrong.

This is idiotic propaganda, rooted in emotion for the expressed purposes of rallying stocks. Here’s another Trump tweet this morning discussing the Fed and markets.

See how obvious he is in attempting to jimmy stocks higher? The only reason why stocks are going higher is because of price momentum. Want to know when to sell? That’s simple — all the time, but you should be buying too.

Want to know when to flip to short?

Easy answer: when prices start heading lower again or at the sign of first long black candle.

Hard answer: anticipate where stocks might exhaust themselves.

It’s never easy to anticipate where a rally might end, because trends are made to be broken. In this tape, I think you’re better off going with price momentum and responding to the prevailing trend, instead of opposing it.

Will the US-China come to a trade deal conclusion?

Yes, but it will likely be superficial. Why would Xi offer major concessions to Trump, who might very well be a one term President?

Watch oil, oil stocks, IWM, HYG, SRLN. Book profits all the time. Take measure of what stocks are working now — because those will be the go-to names to buy during future dips.

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9 comments

  1. roundwego

    Buying third set of shorts. Tvix,tza,faz. Fully loaded. Ready for retest of lowes.

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  2. ferd

    Ray Dalio’s take on China (recently posted on ZH) is a quick, but worthwhile, read …as is “progressive” warmonger Fareed Zakaria’s interview on Sunday with China expert Michael Pillsbury. The takeaway from both of these is that each side may be more intransigent than thought …although I don’t know how much Trump’s views will matter in the end.

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    • roundwego

      China wants taiwan to advance their tech. That is the big fight now.

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  3. gsofield

    Normalized rates? We are far from normalized and we will never get there because WS goes full panic at the thought of turning off the spigot. What’s normal about any of this? Happy trading.

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  4. edge

    Good advice Fly. There are no set ups in a plunge, and reverses are quick.

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  5. tjnyt

    kind of up-down to sideway for now… after up for 3 days in a row.

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  6. tjnyt

    sold crap at open, bought back aapl, sq,wdc, soxl, baba on pull back. portfolio up8, down4 and now up 4%.

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  7. tjnyt

    QQQ up, SOXL down strange., holding down my WDC.

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