R Option saw volatility and captured around 1% in a few days.
The soon expected tariff on some products were pushed back to Dic ’19 this created a short covering rally that it is holding in the SPX. We need to pay attention to future developments as trading below overnight today lows can be an important signal.
YTD the Equities indexes in USA are doing great. SPX is over 15% and Nasdaq 100 is above 20%. What is not to like? Last year SPX was also trading at a similar gain and ended the year negative. It is important to be open to all scenarios.
When we talk about Stock Indexes in China, I talk a look at two Indexes. The first for international investors and the second for locals:
Hang Seng China Enterprises is near 0% year to date and Shanghai SE A Share is above 13% as I am writing now. The index experience a -5.5% in this quarter.
R Option saw volatility and captured around 1% in a few days. At the moment, we are flat and looking for new opportunities.
If you enjoy Dalio’s work here you can find him talking about China. Please note that I do not have any affiliation to Bridgewater.
To conclude, at the moment last news have reset a negative thinking for most short term traders – even Argentina. Shorts were forced to cover and we have the rest of the week to see that we are moving higher or to confirm that market does not care about tariff and last week down can be the beginning for something longer term.
GOLD is is still at 1513 after trading at 1545 yesterday