Home » 5 Signs That Indicate If Trade Tension Are Getting Better or Worse

5 Signs That Indicate If Trade Tension Are Getting Better or Worse
Stocks are poised to rise on August 26, and I give you the must-watch indicators to know investor anxiety is rising or falling.

5 Signs That Indicate If Trade Tension Are Getting Better or Worse

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August 26 – Stock mentions: SPY, FXY, VXX, AAPL, TLT, SLV

Michael Kramer and clients of Mott Capital own AAPL

US Markets

  • S&P 500 Futures +75 basis points
  • US 10-Year 1.52%
  • US 10-Year minus US 2-Year +0.004%
  • Oil $54.83
  • Dollar Index 97.96
  • VIX 19.80

International Markets

  • Shanghai -1.17%
  • HSI -1.91%
  • KOSPI -1.64%
  • Nikkei -2.17%
  • Germany +0.57%
  • UK -0.47%

Stocks are moving higher this morning after news broke early today that the US and China are heading back to the table to talk trade. In all honesty, to make an investment decision based on all of this back and forth is nearly impossible.

The one significant takeaway that continues to hold is that a lot of these significant downdrafts in the markets on China worries one way or another result in a recovery. I think the primary reason for this is that President Trump very much cares about the stock market and its performance. As long as that remains the case, I think the declines are some insulated. (See: Your Survival Guide To The Week Of August 26)

S&P 500 Futures (ES)

We can see that the futures are sharply off their lows. Also, notice how the futures on the S&P 500 did not make new lows. This is a similar pattern to what I noted over the weekend in other asset classes. 

S&P 500 futures

S&P 500 (SPY) Cash

However, for the S&P 500 cash resistance will hover around 2872, and then the 2900 region.

S&P 500 , spx

Dollar/Yen (FXY)

One sign that tensions are easing will be to watch the Dollar/Yen. The Yen is weakening today rising back to around 106. As I tell my subscribers regularly, a yen that is falling towards 100 is strengthening and indicting fears are rising. Meanwhile, an increase towards 110 indicates that fears are easing.

Yen dollar

VIX (VXX)

The VIX needs to continue to fall and as long as it stay below 20, there is a chance it moves lower towards 17.5, which should help to lift equity prices.

vix

Apple (AAPL)

Apple is one stock that is a must-watch with resistance at $209.50.

Apple, aapl

Silver ETF (SLV)

Silver is pushing over $16.40 and could be pushing towards $17.25

silver, slv

iShares 20+ Year ETF (TLT)

I also continue to believe that TLT is heading lower towards $135.

Tlt,

Good Luck today

-Mike

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.

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