Bulletin
Investor Alert

New York Markets Close in:

Oct. 14, 2019, 4:48 p.m. EDT

What individual investors can do after China and Wall Street won this round of the trade deal

The most probable scenario is that the stock market will stay range-bound

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    SPDR Dow Jones Industrial Average ETF Trust (DIA)
  • X
    SPDR S&P 500 ETF Trust (SPY)
  • X
    Invesco QQQ Trust Series I (QQQ)

or Cancel Already have a watchlist? Log In

By Nigam Arora


Getty Images
U.S. Treasury Secretary Steve Mnuchin

On the surface it appears that China and Wall Street won this round of the trade deal.

Who lost? It appears that the loser is America. China has taken advantage of the U.S. over the past 40 years. Let’s discuss a potential game plan for investors with the help of a chart.

The chart

Read: This ETF can protect you from S&P 500 volatility and enhance your long-term returns

Please click here for an annotated chart of Dow Jones Industrial Average ETF /zigman2/quotes/208954582/composite DIA +0.22% . Investors also can use a chart of S&P 500 ETF /zigman2/quotes/209901640/composite SPY +0.11% . Those with portfolios that are heavy in technology should keep an eye on the chart of Nasdaq 100 ETF /zigman2/quotes/208575548/composite QQQ +0.05% .

Note the following:

• The chart shows the highest probability zone on the upside if there is a breakout on good news either on the trade front or from company earnings.

• The chart shows the highest probability zone without a breakout.

• The chart shows the Arora buy signal.

• The relative strength index (RSI) shows the stock market can go either way.

• The chart shows the volume is higher on down days. This indicates high risk in this stock market.

• The details of phase one of the trade deal are missing. Therefore it is not possible to draw a definite conclusion.

• The Trump administration is calling the deal substantial, but it is difficult to see how China did not get the better of President Trump.

• China has agreed to buy up to $50 billion in U.S. agricultural goods. This amount is only about $25 billion more than what China would have bought without a trade deal. China needs these agricultural products to feed its population.

• On the U.S. side, this is a minuscule amount for the U.S. economy.

/zigman2/quotes/208954582/composite
US : U.S.: NYSE Arca
$ 277.89
+0.60 +0.22%
Volume: 809,401
Nov. 13, 2019 1:00p
loading...
/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 309.34
+0.34 +0.11%
Volume: 20.49M
Nov. 13, 2019 1:01p
loading...
/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 201.65
+0.11 +0.05%
Volume: 6.24M
Nov. 13, 2019 1:01p
loading...
1 2
This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.