The market was already mushy coming into the session, but it took a couple of hits from comments on China – US trade talks and an eventual agreement. Larry Kudlow mentioned on Fox Business a deal is still a long way to go. Then came reports suggesting presidents Trump and Xi will not be able to meet before the March deadline for hiking tariffs. Although the market is down on the news, I think it could be down a whole lot worse.
There are two separate forces at work here.
The Dow has some support around 25,000. But the key number on downside would be 24,500. For now, I think it would be wise not to panic, although taking profits on big wins wouldn’t be the worst thing.
It’s going to be interesting to see how this market finishes the session. I continue to believe there will be no shutdown II, and the increase in tariffs will be delayed again until the two leaders can meet face to face; Trump and Xi will not bother to meet face to face without a serious framework for a deal already in place.
|Charles, does it seem like kudlow is purposely trying to cause a sell down, as part of President Trump, negotiating style? USA mrkt goes down. China mrkt follows , Worsening that tensions aren't going to end,& China gets even MORE pressure to negotiate on a USA point framework. Mnuchin talks it up, Larry kudlow says, but but but , Still a long way to go, & Not even a THE PRESIDENT WILL MEET WITH XI JINPING, as a ploy to get more momentum from China selling off.?? Thanks Charles PAYNE & FBN. THANK YOU PRESIDENT TRUMP.|
Ed on 2/7/2019 2:01:16 PM
|Kudlow should keep his lips sealed and let USA and China talk about the trade deals.|
Leonard P Porter on 2/7/2019 4:36:58 PM
|I just don't get it...too far along for that to be a negotiating tactic. CP|
Charles Payne on 2/7/2019 5:24:11 PM
|The hard core communists must be at Xi's throat, he is looking like he is losing face to the might of the American super power... They are not going to want to give up all of their ill-gotten gains, from stealing, extortion and slave labor, just because the Americans say so...|
ANDREW B NEWALLO on 2/8/2019 6:45:25 AM
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