Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $RUTX, $SPY, $VXX

Just 12 days ago everybody on The Street was celebrating Thanksgiving in a very cautious market mode, they came back to their desks, and triggered a Key reversal in the major US stock market indexes that was confirmed on Friday, 30 November and is looking to extend into year’s end + January.

Saturday the market got the outcome of Presidents Trump and Xi’s dinner after the G-20 finished and Sunday it reacted.

FLASH: President Donald Trump says on Twitter that China has agreed ‘to reduce and remove’ 40% tariffs on cars from the United States.

Futures on the DJIA are currently up 488 points after Presidents Trump and Xi agreed to a 90-day halt to their trade dispute that has concerned world equity markets for most of the year.

In addition to the DJIA, futures for the S&P 500 and the NAS Comp are up like amounts, with futures on Crude Oil and Copper posting large increases as well on hopes a China-US trade deal can boost global economic growth.

In the agreement, President Trump agreed not to boost tariffs on $200-B of Chinese goods from 10 to 25% on 1 January in exchange for Beijing pledging to buy a “very substantial” amount of agricultural, industrial and energy products.

China says the 2 sides also agreed to open up their markets.

This delay on the tariffs hike is on the positive side of expectations. In stark contrast to the fear that the US trade hawks in The Trump Administration would make impossible demands, is clear evidence that President Trump is in charge and working to a trade deal with China inline with his vowed trade policies, 1st Canada/Mexico, 2nd China, and last the EU especially Germany

The DJIA had already rallied more than 5% last week in anticipation of a truce in the trade dispute with China.

What it means, my take:

  1. China buys things from the US that it needs and may otherwise buy from us; commodities and agriculture, LNG and Soybean the prime candidates.
  2. The US holds off on increasing tariffs, and
  3. China and the US agree to talk more on things that matter, longer-term tariff levels, intellectual property and access to markets.

Aka America First!

We have Northside plays setting up and will continue looking for more Northside plays into January.

Remember, always take what the market gives, it is your money and so your responsibility.

The Bulls and The Bears

Investor Sentiment

 

Support and Resistance

 

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ending 30 November 2018

Date Symbol Price Technical Analysis Support Resistance
30 November 2018 QQQ 169.37 Bearish (-0.29) 166.70 169.39
30 November 2018 DIA 255.51 Neutral (0.04) 255.37 258.05
30 November 2018 SPY 275.65 Neutral (-0.09) 274.79 278.38

Have a terrific week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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