It was a busy morning, hard rhetoric, soft rhetoric, from both sides of the trade war conflict resulted in interesting swings in the pre-market futures, allowing Wall Street some Bear relief after the red deluge from Wednesday session. China said it will retaliate but expressed the desire for the U.S to reach a middle ground, so there could be a chance for a deal. Trump, on the other hand, delayed some of the new tariffs until mid-December, a decision that will benefit the tech sector, namely Apple, but in response to the Chinese challenge said, “an agreement must be made on U.S terms”.
Despite the softer road, in the S&P500 all safe-haven sectors are on fire, which could indicate troubles ahead for the Bulls and that the morning action was just a Bears Pit Stop. The best strategy, for now, continues to be short term deals and never let your eyes off the ball, because at any given moment a tweet could end up with a nasty surprise for your trade.
Photo by Ricardo Gomez Angel.
