• Kumar

Our thoughts on the US and China trade war

Updated: Aug 27, 2019

The trade war between the two countries has been going on for several months now with no end in sight. We realized that the trade war would not come to an end in May 2019 even though it seemed as the news was predicting as the trade war was coming to an end and the Chinese Prime Minister was going to settle with Donald Trump. We predicted this was not the case and we were alerting our members to load up on SPY puts.

Our long-term view is that the stock market will continue in a downward trajectory throughout the next six months with small jumps though the long-term roadmap looks to be below 250 for SPY. This does not mean tomorrow the market won’t open at 287 or higher.

We believe slowly adding into long-term puts at the current levels is a solid trade idea to hedge any long-term equity positions you may have. The recession may be the result of a prolonged trade war and we have yet to see any of their repercussions of the last several months of tariff increases. This is only due to a lagging affect.

Thanks for reading the blog tonight and hope everyone has a great day tomorrow in the market. If you’re looking for more educational trade ideas and want to share your knowledge and have a great time please join us today using the link above.