Traction following turmoil is what we want to see persist in the new week. I don't know if the President really 'has a deal' with China or he refers to tariffs in place. I do know sending Treasury Secretary Bessent and the Commerce Secretary too, suggest completing what may already be agreed 'in principle', but we'll just have to see the progress.

While there's no doubt the market came back, the extent of short-squeezing was not great generally, as most investors are gunshy and pondering whether trade deals will indeed conclude. Also with S&P barely 2% from a record high, most of the money managers missed the heart of the rally off the prior panic washout (fortunately we added rather than sold at that time) and are reluctant to 'chase' price, but are scrounging for performance with a year near half over.

Below is a summary of the President's Executive Order we've awaited:

Market X-ray: pretty decent bear-trap as suspected feasible; but insufficient drama to ignite much upside in small stocks. I think a lot hinges on the trade talks coming starting Monday in London; so they matter.

China is a bit weaker than recognized; so perhaps that's why they did quickly agree to show up. Of course it's potentially a positive opportunity to improve overall dynamics of China relationships; and I'm thinking about toning-done their aggressive designs on Taiwan for now; and of course that means our Sec'y. Def. doing so as well; provided the behavior can be statesman-like.

Anyway the S&P will be reluctant (barring more oddball news shocks) to drop and several sectors should perk-up. Quantitative Computing is especially firm. Next week is also Apple's World Wide Developer's Conference; not much has been telegraphed (such as beyond maturing Siri's 'Apple Intelligence'). I do not trade Apple (just a bit since we last advised it at 57 retained) but would like to see something favorable addressed at WWDC to help the shares which helps the S&P, or perhaps a unique partnership with a 'voice-generative chat' product or something like that. How they counter the AI device coming which won't require a phone at all, is something worth pondering; but not revealed. Apple is primarily a service business now; and a foldable iPhone is not yet.

Apple has not spent a fortune on AI; they might effectively plug-in Perplexity; and they did buybacks but not robust capital expenditures to internally grow. I also realize they can't lean-into building in India due to Trump-pressure; but of course there's no demographic in the U.S. that could build big quantities here.

Bottom line: kerfuffle in The White House hierarchy became a good set-up for Friday's rebound; and with so many insults hurled; it may be irreconcilable.

Now 'newly-announced' London talks with China should affirm that progress is likely quasi-agreed in-advance; otherwise the U.K. negotiations would be at a lower level than 3 Cabinet members attending; led by Treasury Secretary Bessent, with whom I'd expressed confidence well before a wider investment community embrace, as they generally recognized his 'adulting' influence on the President, and perhaps the whole process. Ideally takes S&P higher.

Enjoy the weekend; perhaps we all need rest after this unusual chaos :)

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