On Friday, July 5th, 2018, import tariff’s on $34B worth of imports from China went into effect in the US. Of course, China retaliated with their own import tariffs on US goods. These were the first real “shots fired” in the “trade war.”
And the market reaction? DOW up 99 points, S&P 500 up 23.
If you recall, the big market drop back in January/February earlier this year was triggered by the hint of a trade war, I guess the reality of it isn’t so bad . . . for now.
The point? Now, more than ever, it is critical to trade what the market is doing – not what we think it should do
Here is a quote from a great article I just read, “The traders that make great timing calls are simply reacting to conditions as they change. They don’t try to pretend that they know what is going to happen. They just acknowledge the current reality and act upon it.”
You can read the full article HERE.
I guess the author, Jame Deporre, has been reading “Beyond The Noise,” as I’ve been saying the same thing for years 🙂
Or, at least great minds think alike . . .
So what is the market doing? What is the current reality? I walk through it in this weeks video.
As always, I welcome your comments and questions.