In this morning’s note I wrote:
“Today, for example, has to have traders on pins and needles. Should the President announce that Hong Kong loses its special trade privileges, if, worse yet for short-term bulls, he says that China’s gone too far this time and we’re canning the trade agreement, sanctioning certain officials and completely banning Huawei from all U.S. markets, well, today may very well provide the perceived catalyst that sends the market on its journey to those March lows,”
Well, we got just about all of that and the market rallied, a bunch, immediately following the President’s announcement. So what gives? Well, for starters, we won’t complain; that said, what gives is that there was no mention of “canning the trade agreement.” Which was absolutely the Elephant in the press room.
The next hour of trading will be interesting, but in the fundamental scheme of things, meaningless…