90 day halt on resuming trade war tariffs. Not a cancellation.
Even the White House was confused on Trump’s terms of the trade halt.
Biz Insider Version
White House confusion of trade war
It appears that the 90 day halt on increasing tariffs began on Dec 1. Meaning if a deal is not reached within 90 days (not looking likely) volatility will remain the norm for quite some time.
Xi and Trump have apparently agreed to hold off on further tariffs. A lot of the volatility in recent weeks was hinged on this meeting at G20, so expect a drop in the VIX, Chinese markets to skyrocket, and a start to the Santa Claus rally. TREAD WITH CAUTION. Traders are expecting the seasonal rally, so it’s very likely any immediate run ups will suck people in quickly before retesting the lows of October somewhere in the next few weeks.
S&P 500 bouncing off resistance at 200 day SMA. Target reversion to 9 day EMA. 50 day SMA is only 1.3% above 200 day SMA. Watch for possible death cross which tends to trigger a mass of selling.
Previous day MO from Mcclellan Financial Publications