This was NOT a win for the Trump administration, and the “relief” rally hitting the markets this morning is completely misguided. Here’s why…
The all-important US-China meeting occurred at G20 and accomplished pretty much nothing.
There was no real progress, nor was there a deal.
All that happened was that China and the US agreed to continue trade negotiations for another 90 days… during which time they promised not to impose new tariffs on one another.
To be clear, this was NOT a win for the Trump administration. And the “relief” rally hitting the markets this morning is completely misguided.
The fact that stocks continue to fall for the same “we’re making progress, in fact, we might think about possibly talking about having a deal at some point in the future” shtick only means the coming crash will be worse.
This rally is a gift from the market gods to prepare for what’s coming. In fact, the currency markets are already telling us that a full-scale crisis will be hitting very soon.
Take a look at the $USD. In the last week, the Fed switched to dovish AND we had major progress in the China/US trade negotiations and yet the $USD has barely dropped.
Under normal circumstances, the policy shift from the Fed ALONE would have warranted a 3%+ collapse in the US currency. The fact that the $USD hasn’t even fallen 1% tells us that the largest most liquid markets in the world are flashing “WATCH OUT.”
Indeed, while everyone is celebrating the rally this morning, our Crash trigger remains in a critical “sell.” The last time this triggered was right before the October meltdown.
If you are not already preparing for this, NOW is the time to do so.
On that note we just published a 21-page investment report titled Stock Market Crash Survival Guide.
In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.
Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.
To pick up yours, swing by:
Chief Market Strategist
Phoenix Capital Research