I woke up early this morning and reviewed overnight market results and became momentarily optimistic … maybe all this trade tension has released, and we can go back to normal investing / trading.
Alas … that’s how daily news distorts things and invites us to relase our well thought out strategies. I am often reminded of something smart people taught me long ago: a single or couple of data points do not make a trend. Plans and strategies are based on a set of clues (trends) not single data points.
Here is the key single data point that i found burried in https://barchart.com daily update: “China’s Shanghai Composite climbed to a 2-week high on signs that state-sponsored funds entered the market and bought blue chip stocks.” – that diffused some of my news based optimism earlier.
My bearish move money to Treasuries and wait for better value entry points (in US and Asia) remains intact.
Here’s another post on the topic of government intervention https://seekingalpha.com/article/4207078-comes-chinas-literal-plunge-protection-team