29 Oct Stocks Making a Comeback
The back and forth trading patterns continue in the US stock markets with today being a day of significant gains for equity investors. With each turn in market sentiment comes new rhetoric out of news pundits. Today, the focus is on the positive events happening. However, this market volatility is largely based on the technical outlook, as markets bounce from support to resistance. This is a day trader’s dream, with great opportunity being created in both the down and up markets. With mortgage bonds hitting their 100-day moving average, the current technical picture for mortgage interest rates is not looking good for the day. I’m sure tomorrow will be entirely the opposite.
The US is preparing tariffs on all remaining imports from China into the United States. Should the meeting between President Trump and Chinese President Xi Jinping fail to ease the trade war, the tariffs will go into place. This move seems to be a strategic one by President Trump to establish his expectations for the meeting ahead of time. With China’s president now aware of the potential consequences, hopes are that he will bend to the demands of President Trump to help avoid further negative economic impacts.
The bond market has a strong ceiling of resistance to contend with. We will suggest a locking bias.