Quick Note On This Morning’s Action: Legit or Lucy?

Dow’s up 300+ as I type on news that China is considering lowering its tariff on U.S. made automobiles from 40% to 15%.

While that, if it happens, is of course very good news, keep in mind that that just takes us back to where we were pre-trade war on one particular (although a big) item. Something from the American side — as the U.S. tariffs are essentially a drag on the U.S. consumer — would be huge.

It (again, if it happens) does suggest that China is willing to separate the recent arrest of Huawei’s CFO from the trade negotiations, at least for the moment, and that is indeed huge.

That said, whether or not this morning’s rally sticks remains to be seen. It certainly may, but don’t be shocked if it doesn’t. The trade topic thus far has been too akin to Lucy with the football:


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