Here's How to Get Ready for Every China Trade Deal Outcome

Article was originally posted here

There’s a lot to like about this market…

It’s technically strong, and leadership among the sectors hasn’t changed. This is good.

The Nasdaq Composite and Russell 2000 indexes are out above their 200-day moving averages as of Friday; all four of the major indexes are back above this key trend line. The CBOE Volatility Index (VIX) has settled below the critical 15-point level and was last seen headed south. I’m lovin’ it.

And of course, more than 80% of the S&P 500 has reported earnings. Seventy percent of ’em beat earnings expectations, and 60% trounced revenue expectations. Phenomenal.

Finally, a raft of weak-ish economic data had traders taking some profit off the table last week, which, in conjunction with a sagging VIX, suggests we’re done with the selling for the time being.

The trend is your friend, I always like to say, and the trend is “up.”

But we still have to make it past the China trade deal – or lack thereof.

This isn’t necessarily all that scary. In fact, the way I see it, three things could happen, two of which could be really profitable, if you’re prepared…

Join the conversation. Click here to jump to comments…

About the Author

Chris Johnson is a quant – he’s obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he’s been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains – entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.

Chris also contributes to Money Morning as the Quant Analysis Specialist.

Read full bio

This post is from MoneyMorning. We encourage our readers to continue reading the full article from the original source here.