The US tariffs increased by 25% and we are still waiting the Chinese promised response as trade negotiations continue in Washington D. C.  Asian markets closed mixed but mostly higher overnight and European markets are also in rally mode this morning and green across the board.  US futures fluctuated substantially overnight but as we move toward the open hope of a deal continues to well up.

This week has created significant technical damage in the charts and its very difficult to know what to do as we wait for negotiations to conclude and the Chinese response to the tariff increase.  While the trade talks are front and center we also have to consider the rising tensions with North Korea and Iran as we consider the weekend risk. 

On the Calendar

We have a little rest on the Earnings Calendar with just short of 120 companies reporting today.  Notable reports include DS, ENB, JD, MAR & VIAB.

Acton Plan

As US/China negotiations continue in Washington D.C. the president did as he said and raised tariffs by 25%.  At this time China has yet to respond but promises that it will do so with equal tariffs on US products.  During the night futures were all over the map swing from up more than 100 points to down nearly 100 points as we neared the midnight deadline. 

This morning the futures are suggesting a mixed and modest open but that could easily change as earnings reports roll in and we get the latest reading on the CPI at 8:30 AM Eastern.  With the current technical damage and waiting for China’s response it’s very difficult to access the risk of holding or adding new position ahead of the weekend.  The trade war may be the least of our worries as issues in North Korea and Iran continue to escalate.  Plan your risk carefully and have a wonderful weekend everyone!.

Trade Wisely,

Doug