The President is meeting the Chinese Vice Premier at 4:30 Eastern today and the big question is, will they or won’t they announce a deal has been struck ending the US/China trade war?   Then the next question, if they do announce a deal how will the market respond?  Big questions for traders to ponder today as we wait.  If that’s not enough to think about keep in mind the Employment Situation number come out before the market open on Friday.

Certainly, a lot to think about, as you plan your risk heading into Friday.  As of now US Futures are pointing to flat open voting to take a wait and see approach at least for the moment.  My thought is to avoid adding new risk today and maybe even take some profits to reduce my overall risk depending on the price action of the day.  Friday morning could be a wild ride if an agreement is announced and could be equally nutty if there is no agreement. So Will They?

On the Calendar

We have fewer than 20 companies reporting as the 1^st quarter reports finally begin to wind down.  However, we still have a few notable report s that include STZ, DLTH & ISCA.

Action Plan

During the early evening US Futures were up nearly 60 points on the news that President Trump would be meeting with the Chinese Vice Premier today.  The assumption is that the US/China trade war may be close to completing a deal.  The meeting is not until 4:30 ET today.  However, instead of a morning pump in the futures today the markets are in more of a somber mood.  Asian markets closed mixed on very light price action overnight they waiting for news on an agreement.  European markets are currently flat to mostly lower as Italy is expected to cut the 2019 GDP forecast.

Consequently, US futures are currently flat shaking off the overnight highs.  TSLA fell about 7% after missing on delivery estimates and warning of a negative quarterly report.  Now the question is will we or won’t we hear about a trade deal with China later this afternoon and what should we do as we wait.  The next question, if there is a deal will it move the market higher or will it be more of a sell the news event?  Tough questions to sure and a very uncertain day ahead for traders to ponder.  Also keep in mind the Employment Situation number will be out before the market opens on Friday.

Trade Wisely,

Doug