FOR WEDNESDAY: (3/14) There was a huge cluster of positive cycles peaking into March 12-13–and given a number of reversals, we have to assume that something bigger is happening until the next cluster into March 18, and then the trade is on hold into the FOMC announcement. On the fundamental level, trade war against China is not a help for the market and the momentum that started Tuesday, may continue. Reuters is reporting that Trump is planning to impose tariffs on $60 billion of Chinese imports. The tariffs will primarily target technology and telecommunications imports – but would not be expressly limited to these sectors, according to one source. Politico reported earlier that Trump rejected a plan for imposing $30 billion in tariffs on Chinese imports, saying they weren’t big enough. Just when investors thought President Trump might be easing up on his protectionist push following the uproar caused by his decision to slap tariffs on steel and aluminum imports, Politico is reporting that Trump’s next trade salvo will be explicitly directed at China.
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