Friday, August 23, 2019 9:26 PM EST
Well, that didn’t go as planned, now did it? Powell didn’t say much that was new. But if you listened to what he said, the current environment supports further rate cuts based on the geopolitical factors.
The S&P 500 fell pretty sharply today by about 2.6% worth. The S&P 500 managed to close right in that critical zone of support around 2850. I call it critical because the next stop is 2825, and I’d rather not find out if the market can hold support there again.
(Click on image to enlarge)
The market now finds itself in a precarious spot and the next 1% is going to be very telling, if we retest the lows of Junes, or if has enough strength to retest 2935.
It becomes that simple for now.
Being it is Friday, we will leave it at that, with more over the weekend.
Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I ...
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Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly, and I do not trade my account on the stocks spoken of in this column unless fully disclosed.
Additional Disclaimer: Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.
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Rightfully so. If the US pulls its companies and production out of China it will not only destabilize currencies as the dollar strengthens, the Yuan crashes, but it will take years for companies to establish their business to the same level as what they have in China. You'd think Trump would know that business doesn't happen overnight. What is being done to US/China trade is not only bad for China, it is bad for the US as well. There needs to be a solution. Otherwise Trump's trade war will just be seen as a nightmarish failure which is is so far.