Trade Truce



Outlook 12/03: Stock markets around the world are in rally mode, posting big gains following a truce in the trade spat between the U.S. and China. President Trump agreed to postpone an increase in the tariff rate on $200B worth of Chinese imports to 25% (from 10%) that was scheduled for Jan. 1, while China will resume purchases of some U.S. farm, energy and industrial commodities. The trade detente relies on progress in talks that both sides aim to complete in the next 90 days covering broader issues, including forced technology transfer, intellectual property and cyber theft.

/ESZ18 Value: YVAH 2755 YPOC 2742 YVAL 2733 GAP 2764.25

/ES Plan: On Friday market closed balanced but Sunday Globex opened with a double digit bullish gap, moving above previous value, within 2796-2788 range, so we've these options:

A) If market remains above HVE 2796 with bullish internals, be a buyer towards HVE 2808 ONH 2814 GAP 2816.75 and HVE 2819.

B) If market starts to move below 2796 with bearish internals, become a seller towards ONL 2793 and HVEs 2783 and LVN 2765.

Note: U.S. stock exchanges, including NYSE and Nasdaq, will close Wednesday to honor the memory of former President George H.W. Bush, who passed away late Friday at the age of 94. The last time U.S. financial markets had such a closure was in 2007 after the death of former President Gerald Ford. SIFMA and CME Group confirmed whether bond, futures and options markets will also suspend trading on Dec. 5.

Today's Economic Calendar

9:15 Fed's Williams Speech
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 Fed's Bralnard Speech
1:00 PM Fed's Kaplan Speech

Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.

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