China's economy stumbles, futures DOWN

A troubling start to a big week for retail ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ The Chinese economy is showing signs of strain... and that could have a big impact on all of us. We so often overlook how critical China is to what we do every day. Cutting Russia out of the world economy has been a tremendous blow to Europe, but the United States is already recovering from a recession. The stock market has been showing remarkable strength, and even companies like Disney (DIS) which looked like they were going to miss earnings have been surpassing expectations. However, China does not look like it is going to meet its economic targets this year. It's especially ominous because this is coming at a time of intense geopolitical tensions with the United States after Speaker Nancy Pelosi's visit to Taiwan. We all know that "Communist" China isn't exactly what Mao had in mind. The government derives its legitimacy from two major sources - its ability to deliver sustained economic growth and its nationalist credentials. If the government can't deliver on the first, it may start emphasizing the second, and that could be a big problem for all of us. I doubt there will be any kind of real military conflict - though when you have huge amounts of warplanes and ships in a concentrated area, something can always go wrong. (Remember that part in Hunt for Red October when Fred Thompson says, "This will get out of control?") What I'm really worried about is China pursuing policies that could cause more economic disruptions for an already struggling global supply chain. Look, the fact is that despite the federal government trying to push semiconductor manufacturing in the United States, a lot of our production comes from Taiwan. And a lot of those "clean energy" initiatives, like electric vehicles, are also dependent on China. For example, Elon Musk just congratulated the Tesla (TSLA) factory in Shanghai for making its millionth car. What happens to TSLA - and the American economy - if we see more production bottlenecks because of COVID-19 or political problems? I see a lot of opportunity for growth in this economy, and a lot of stocks are still looking very promising right now. I also have no patience for doomerism. But don't ever forget that economics is about human behavior - and when it comes to politics, we're dealing with pride, ambition, ego, and the other irrational impulses that can screw up an efficient system. Of course, if you read the charts right, you can turn catastrophe into cashflow. And you can also take advantage of the volatility and uncertainty that comes with this kind of market. Don't miss my column on how the RapidFire team just pulled off a big win on a small-cap stock. Hopefully, there will be plenty more like that in the days to come. Let's get at it. Keep Moving, Any strategy that makes you money consistently is worthwhile. Though many new traders believe that trading is primarily about indicators and tools, Chris maintains that it is at least 95% about emotional control. This is especially relevant in this bearish, choppy market which has made the trading world extremely difficult. Learn some pro tips to come back from your losses and stay in the game. [CLICK HERE TO WATCH]( WORD ON THE STREET Luxury Brands Thrive, TSLA Marks 3 Million, Chinese Economy Stumbles - No Recession For The Rich - LVMH, which owns Christian Dior, Fendi, and Givenchy, reported revenue growth of 21% year-over-year in the first half of 2022. Capri Holdings, which owns Versace, reported that its quarterly revenue is up 15% year-over-year. Luxury brands are thriving despite, or perhaps because of, inflation. Shows of status stand out far more in an environment when many people are trying to save everything they can. - China Slashes Interest Rates – The People's Bank of China cut its lending rate on one-year loans by 0.1% as new figures show the country missed estimates on production and retail sales. The second interest rate cut this year is a powerful indicator that Beijing is still paying for its misguided "zero-COVID" policy that dealt a devastating blow to an economy that was already struggling. China probably won't meet its annual growth target of 5.5% (People's Bank of China, Image from [Max12Max CC-BY-SA 4.0]( - Musk's Millions – While the Chinese economy is struggling, Tesla's Shanghai factory is surging. "Congrats Giga Shanghai on making millionth car!" Elon Musk tweeted yesterday. "Total Teslas made now over 3M." Of course, it was a production halt in Shanghai due to COVID-19 that caused some of Tesla's revenue troubles earlier this year, leading Musk to call his new factories "money furnaces." - Capitalism's Report Card - Tech has weighed in, but this week is all about retail. Target (TGT), Home Depot (HD), and Walmart (WMT) all report earnings this week. Perhaps even more importantly, the Census Bureau will report retail sales data for the country on Wednesday. "3-Pillar" strategy spots a 108% surge in just 4 days... RapidFire is on fire — with new trades are on the verge of exploding soon! [Click here to learn more](. HOT SPOTS: What's Going on in Geopolitics - Iranian Media Praises Attack On Salman Rushdie – After author Salman Rushdie was stabbed multiple times, state media from the Islamic Republic of Iran praised the assassination attempt. FARS News smirked that Rushdie was an "apostate" and a newspaper connected to the Iranian leadership praised the attacker, calling him a "courageous and duty-conscious man." "Let us kiss the hands of the one who tore the neck of the enemy of God with a knife," the paper wrote. Iran's revolutionary leader Ayatollah Khomeini issued a fatwa against Rushdie in 1989 because of the author's book "The Satanic Verses." - West Calls On Russia To Withdraw From Nuke Plant – The Zaporizhzhia Nuclear Plant in Ukraine has been repeatedly shelled in recent days, though both Ukraine and Russia are accusing the other of being responsible. Authorities from the USA, the EU, and the United Kingdom accused Russian forces of posing "a great danger" because of their occupation of the plant. However, Russia has said Ukraine is the one creating a potentially "catastrophic" situation. - Kim/Putin Bromance - Russia may have lost the European Union, but it still has North Korea. In a letter sent by President Vladimir Putin, the Russian leader said that his country would "expand comprehensive and constructive bilateral relations" with North Korea. Kim Jong Un responded warmly to the letter, emphasizing "comradely friendship." North Koreans are reportedly under consideration to help rebuild Russian occupied areas of Ukraine and, according to some reports, have even been offered as potential troops.  CUTTING EDGE: What[']( Happening In Tech - SpaceX Joins With South Korea - North Korea may have Vladimir Putin but South Korea has Elon Musk. SpaceX helped South Korea with its first mission to the moon with a launch earlier this month. A recent regulatory filing revealed South Korea's Mirae Asset Global Investors was one of the two leading investors in a recent $250 million fundraising round for the company. SpaceX is currently valued at an astonishing $127 billion. - Toast (TOST) Crushes Earnings Expectations – Toast, a company that provides operating systems for restaurants, posted a 58% quarterly increase in revenue compared to one year ago. It also increased the number of locations it works with by 40% in the second quarter. The stock was up over 8% during the trading day Friday, though it lost more than 3% in after-hours. It will be one to watch this morning. - Bitcoin Tops $25K, Promptly Bombs - Well, it was fun while it lasted. BTC recovered from its recent funk and topped $25,000 for the first time since June. Unfortunately, the gain was short-lived. Going into this morning, it was barely holding on above $24,000 as cryptocurrency continues to be mired in regulatory uncertainty. ETH is well below $2,000 while other currencies are dropping fast FOR YOUR CONSIDERATION There’s no other way to put this…Small caps trade differently. When trading companies with larger market caps, they’re less volatile and the big money is made on options, which makes sense. a volatile market, small-caps are the place to be. And talk is cheap - results are all that matter. Here, Corey breaks down a win the RapidFire team just pulled off... and shows you how we can do the same thing again in the days to come. [TRADE BRAKEDOWN: THE SHAKEOUT]( Enjoying Dawn Report? Learn something, made some money? SHARE YOUR STORY WITH US OR TELL US HOW TO SERVE YOU BETTER. Let us know at info@rogueinvesting.com You’re receiving this email because you're signed up for alerts from Dawn Report. Make sure to keep them coming by [whitelisting Rogue Investing](. Copyright © 2022 Rogue Investing. All Rights Reserved. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Rogue Investing.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. 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