CHINA BREAKTHROUGH AND FED SUBSERVIENT TO TRUMP — HAVE YOUR CAKE AND EAT IT TOO $SLV $GLD $GDX $TBT $TLT $INTC $SPY $AAPL $FB $QQQ

Twitter
LinkedIn
Facebook

CHINA BREAKTHROUGH AND FED SUBSERVIENT TO TRUMP — HAVE YOUR CAKE AND EAT IT TOO $SLV $GLD $GDX $TBT $TLT $INTC $SPY $AAPL $FB $QQQ

A deal could lead to faster economic and earnings growth, necessitating higher official interest rates from the Federal Reserve.

U.S. stock market futures spiked as soon as the news hit that the U.S. and China would schedule high-level trade talks in October.

My opinion does not count, but the opinion of someone who is apparently connected to the Chinese government does. China’s Global Times editor tweeted: “There’s more possibility of a breakthrough between the two sides.” Let’s explore the issue with the help of a chart.

Chart

Please click here for an annotated chart of S&P 500 ETF SPY, which tracks the benchmark S&P 500 Index.  For the sake of transparency, this is the same chart that was previously published.

Note the following:

• The chart shows a “megaphone” top pattern.

• Bears have been making scary predictions, saying this is a bearish pattern and the stock market will fall to the lower trend line. This scenario would cause major losses for buy-and-hold investors who are fully invested.

• Bulls believe that not only there will be a breakthrough with China, but also that the Federal Reserve will be subservient to President Trump and aggressively cut interest rates.

• If bulls are right, the stock market will break above the rising trend line shown on the chart. This would be a new high for the stock market.

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.

What does it all mean?

I have previously written: “A megaphone top, when properly formed, can be useful in trading individual securities. However, the predictive power for a pattern that is not well-formed for the overall stock market is questionable.” I have also said that investors ought to be aware of the pattern, but there is no need for dread.

See also  MOMO CROWD WANTS THE FED TO BOW TO THEM, WHAT HAPPENS TO THE STOCK MARKET IF THE FED DISAPPOINTS?

Start with Arora’s Second Law of Investing and Trading: “Nobody knows with certainty what is going to happen next in the markets.” Bulls believe that a trade deal will occur with China and the Fed will aggressively cut rates….Read more at MarketWatch.

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence