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[dTraderB]

Donald J. Trump‏Verified account @realDonaldTrump

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We are right where we want to be with China. Remember, they broke the deal with us & tried to renegotiate. We will be taking in Tens of Billions of Dollars in Tariffs from China. Buyers of product can make it themselves in the USA (ideal), or buy it from non-Tariffed countries...

2:06 PM - 12 May 2019

and this from what is regarded as an unofficial voice of the Chinese Govt:

Hu Xijin 胡锡进‏ @HuXijin_GT

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The sooner new tariffs on $300 b of Chinese goods come, the better. That means trade war comes to the 1st turning point, shifting from a comprehensive US offensive to a stalemate. The two sides will then compete on endurance. China’s political system will ensure we won’t lose.

China has made public 3 core concerns that must be addressed &it won't make concessions on. From perspective of China's politics, there is little room for compromises. They will insist.This political logic won't be changed no matter how much additional tariffs the US will impose.

 

[Data]

One way to fix the trade imbalance would be to stop doing QE and cutting interest rates to stimulate domestic consumption. Get the other central banks in Japan and Europe to quit subsidizing trade, pushing deposits into US financial assets, and outright buying of US equities.  The recycling of mortgage agency securities into treasuries is another stealth QE by the Fed.

 

The main problem seems to be the same as with the North Korea 'deal'.   The US would not rescind any sanctions if North Korea and the US achieved an agreement.  In this case, the tariffs would not be canceled if there was a treaty.  There is no incentive to reach an agreement in this case. 

 

The key seems to be that China's economy is surpassing the size of the US economy and destined to become much larger.   The ability to influence China starts to wane as it becomes more independent, especially as they wean themselves off the US, Japan, and Taiwan for advanced technology designs.  There are reports that most of the engineers that return to China from the U.S. have trouble competing with recent Chinese graduates.

Edited by Data, 12 May 2019 - 05:12 PM.

[dTraderB]

Throw out TA and FA, it's all TRADE talk...

Axios‏Verified account @axios

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White House economic adviser Larry Kudlow admitted to Fox News' Chris Wallace that the Chinese do not directly pay tariffs on goods coming into the U.S. — as Trump has repeatedly, and incorrectly, claimed.

 

[dTraderB]

No surprise market is down but would not start shouting CRASH or the sky is falling...

 

Note the Chinese reaction, this is one of the unofficial official voices of the Chonese govt:

 

1. Hu Xijin 胡锡进‏ @HuXijin_GT 2h2 hours ago

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   China hasn’t released countermeasures immediately. I believe the reason is that China is drafting a plan that will have precise effects, making sure it hits the US while minimizing damage to itself.

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   Hu Xijin 胡锡进‏ @HuXijin_GT 8h8 hours ago

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   China is obviously less powerful than the US, but it has strong capability to protect its core interests, which are narrow in scope. Even N.Korea is strong when it comes to its core concerns.China respects US interests, the US should also be able to discern China's core interests

 

[dTraderB]

I need a bounce.... to reshort

 

Bounce, baby, bounce!

 

Give me minimum 50 NQ-point bounce

[dTraderB]

More trash talk...now mentioning Treasury, and now talk of a FED rate CUT, ASAP

 

Hu Xijin 胡锡进‏ @HuXijin_GT

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China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.

5:11 AM - 13 May 2019

 

[dTraderB]

looking for a higher low in 5m NQ chart; if not, then down again.

 

now they are mentioning tariff on Euro autos... WTH

[dTraderB]

Reluctantly, I closed another 14 QQQ SEP puts. 

 

 

[dTraderB]

Looking to buy beaten-down, good upside potential, reputable stocks, for my LT portfolio that is almost empty

 

Any suggestions? 

[dTraderB]

GOLD? 

 

GLD  

 

Douglas Kass‏Verified account @DougKass

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Buy $GLD. @realmoney @jimcramer

9:10 AM - 13 May 2019 from West Palm Beach, FL

 

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the gold markets. * Real interest rates have fallen sharply - which gold historically is tied to. (The five year real rate has fallen from 1.16% in November to only 0.51% today.) Given the above, it seems that a core position in gold makes sense. @jimcramer @tomkeene

9:07 AM - 13 May 2019 from West Palm Beach, FL