Stock Market Rally Faces New Threat With China's Lazy Deal-Breaker

[Option Beast]( 08/15/2020   |   [View in browser]( --------------------------------------------------------------- [Stock Market Rally Faces New Threat With China's Lazy Deal-Breaker]( The U.S. stock market has continuously rallied over the past month, fueled by favorable market conditions. Strategists warn that China is far from fulfilling its commitments in the phase one trade deal. The fear of additional geopolitical risks could rattle the markets, especially as economists brace for a cascade of corporate bankruptcies. [More...]( SPONSORED CONTENT [You Could Make $300 to $1100 Per Contract With This Simple Trade]( Imagine getting really good at mastering just ONE simple trade. A trade that appears like clockwork between 9:30-10:45am on most trading days. This free step-by-step guide, by options expert, Dave Acquino, shows you how to spot and take these trades so you can walk away with daily profits! [CLICK HERE for instant access.]( [REFLECTIONS... Stomping Toward November By David Sager](#) The Nasdaq Composite bulled its way to 11,000 this past week, closing at 11,010.98, a 2.47% gain. The S & P 500 gained 2.5% to close the week just 1% off its all-time high. The Dow Jones is flirting with 28,000, hitting 27,433.48, up 1,005.16 points. Throw in gold's move to above $2,000.00 and you can understand the results of these strong indicators. These are all very significant trends, given how bad the economy is performing. On Thursday jobless claims were somewhat better as only 1.2 million Americans filed for unemployment insurance, though more than a million people lost their jobs in just a week.. And yet the markets continue to climb, even if 82% of companies topped analysts forecasts, well above the 71% average during the past four quarters, showing that corporate America has held up far better than anyone expected... of course that's old news. From the vantage points of Washington and Wall Street, things seem perfectly fine, with the jobs market slowly improving and the stock market near all time highs. Factors in the White House and the Democrats congressional leadership remain far apart in negotiations on another stimulus package. That is in stark contrast from the spring, when financial markets were in a 'free-fall' and the $2.3 trillion Cares Act was passed with lightning speed. Extending weekly supplemental unemployment benefits, along with urgently needed aid to states and local governments are key sticking points. We all hope these lawmakers will act before their 'vacation' begins. The rush for gold isn't over yet! As investors seek shelters, gold enters the picture. A long time favorite when times are perilous, gold is always there. The U.S. dollar is another risk factor. The stronger the dollar, the weaker gold tends to become. In many ways gold is a testament to the long history of its satisfying security. Moreover, one issue looms in the background that isn't fully reflected in gold's price: the U.S. Presidential election. If Donald Trump is re-elected, gold will benefit because his opponents will fear he may take extraordinary actions in his second term. If Biden wins, gold should advance because conservatives will fear that he will further debase the dollar with tax-and-spend policies. In any event the 'shiny metal' wins. The broken U.S. - China relationship is coming to a head, as Chinese stocks traded lower on Friday. President Trump issued an order banning Tencent's WeChat messaging app and ByteDance's TikTok video platform in the U.S. within 45 days if they remain under Chinese control. The White House also threatened it will kick Chinese stocks off U.S. exchanges in 2022 if compliance isn't adhered to. The riff could put Chinese stocks out of direct reach of U.S investors. These tensions are exacerbated by the ongoing 2 1/2 year trade war and the iron-fisted take back of Hong Kong, not to mention the much needed tariffs that were finally enacted in 2018. RUMBLINGS ON THE STREET Garrett Wilson, Tax Foundation, Barron's :Biden's tax plan would slow economic growth because of the way (it) raises revenue." "Trump(s) impulse to cut taxes no matter what is also not a good way to address the crisis." Arthur M. Shatz Oakland Gardens, N.Y., Barron's "The federal government must demand and enforce transparency in the way data are reported." President Donald Trump, on imposing 10%, aluminum tariffs on Canada, Barron's "Canada was taking advantage of us, as usual. The aluminum business was being decimated by Canada, very unfair to our jobs and our great aluminum workers." Steven Mnuchin, Treasury Secretary, Barron's "We built a great economy once; we're building it back" Steven Sosnick, Interactive Brokers' Chief Strategist, Barron's "Gold bugs are the cicadas of the investment ecosystem," says Mr. Sosnick. "They hibernate for years and emerge in a frenzy in reaction to some fear that ultimately subsides, and then they go away until the next maelstrom sparks their re-emergence." Tony DeSpirito, CIO of U.S.Fundamental active equity at BlackRock and manager of the $16.8 billion BlackRock Equity Dividend Fund, IBD "Markets have been broadly positive in July. The Fed seems to continue to be in a we-will-do-whatever-it-takes mode. And on the fiscal side: Obviously, there's some debate, but it's around the size of it, not whether or not we need one." [6 National Restaurant Chains In Deepest Trouble Amid Covid-19 Include Denny's, Dave & Buster's, The Cheesecake Factory]( Casual dining chains were already facing challenges before COVID-19, hurt by the rise of fast-casual competition and increased food costs. Now, several of the largest restaurant companies in the U.S. are struggling with capacity restrictions on indoor dining and attempting to lure customers with takeout in a bid to avoid financial disaster. [Article continues...]( [Americans Keep Buying Stuff Despite The Pandemic - Retail Sales Rise For A Third Straight Month]( Retail sales rose 1.2% in July vs. the Dow Jones estimate of 2.3%. Excluding autos, sales actually beat the consensus, rising 1.9% vs. the forecast of 1.2%. Electronics and appliances led gains, while bars and restaurants also were up. [Click to continue reading this article...]( [Federal Reserve Reveals Research Plans For Digital Dollar]( Federal Reserve Governor Lael Brainard provided a broad description of the Fed's ongoing research and plans in the potential development of a U.S. central bank digital currency (CBDC), also described in the U.S. as a Digital Dollar. [More here...]( SPONSORED CONTENT [[Exposed] What Pro Option Traders Don't Want You To Know...]( The pros want you to believe that options trading has to be risky. But a careful and caution engineer figured out a way nearly anyone can trade options SAFELY. [Free guide reveals the step by step system: Click here to get this FREE guide before it's too late.]( --------------------------------------------------------------- [Option Beast]( Send this to a Friend. [Click here.]( | Not a Subscriber Yet? 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