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Afternoon Note

Immediate Changes

By Charles Payne, CEO & Principal Analyst
12/3/2018 1:44 PM
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It’s not a surprise the big start to the session has given up ground to profit-taking and maybe some short reloading. Of course, the shorts must work harder after last week, when we saw less market pressure from the Federal Reserve and now on the China trade dispute.

Larry Kudlow says we should see immediate changes in China purchases from the United States and many are wondering if that means soybeans and agricultural products. There is no doubt farmers have been targeted by China and yet there are reports of major pent-up demand in China which would make tariff relief a win-win.

Chart

The trade dispute isn’t over but there are reasons for optimism even as the naysayers continue to cast doubt.

The big winners today including “China plays” stocks of companies that do business in China and/or manufacture in China:

Consumer Discretionary

Tech

Industrials

S&P 500 Index

+0.75%

Communication Services (XLC)

+0.64%

Consumer Discretionary (XLY)

+1.60%

Consumer Staples (XLP)

-0.69%

Energy (XLE)

+1.51%

Financials (XLF)

+0.37%

Health Care (XLV)

-0.62%

Industrials (XLI)

+1.08%

Materials (XLB)

+1.08%

Real Estate (XLRE)

-0.15%

Technology (XLK)

+1.50%

Utilities (XLU)

+0.13%

Today’s close is going to be very intriguing because the pendulum of panic shifted to buy last week and there is a ton of cash on the sidelines right now.


 

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