We’ve been waiting long enough for this Trump-Xi meeting at G-20 which starts tomorrow, Friday and ends Saturday.
We’re going to get news out over the weekend that the meeting on trade either:
1) Came to an agreement to cut tariffs and play nice, or
2) Have the makings of an agreement in the future with no change today, or
3) Continue to disagree with no progress.
Our bias leans us to the second option.
But if we get option 1 the stock market can rip higher by a huge number, maybe 5% on Monday.
If we get option 3 the market can just as easily plunge 5% on Monday.
There is a huge range of outcomes that we need to prepare for. This is a greatly anticipated event that shouldn’t be taken for granted. Large investment funds will likely chase the trend driving stock market follow through either way.
The trade war has slowed economic momentum causing a very weak Q3 earnings season. We told subscribers to hedge out for the earnings season which helped avoid risk.
A positive conclusion of the trade war could mean a forthcoming rally, but no changes could cause a stock market plummet. We plan to respect and follow the market whichever way the event decides.
We’re wishing you success.