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Trump lambastes Twitter, says it is doing nothing about the lies and propaganda from China

Trump tweets out more criticism against Twitter

Twitter is doing nothing about all of the lies & propaganda being put out by China or the Radical Left Democrat Party. They have targeted Republicans, Conservatives & the President of the United States. Section 230 should be revoked by Congress. Until then, it will be regulated!

And so the drama continues to unfold. Once again, just be mindful of the situation here in case it creates further negative spillovers for tech stocks in general.

Psychological Risk Management

  • If you’re out of balance, you’re going to make bad decisions, and trading the market is a decision game
    • If you’re overtrading, you’re out of balance
    • If you’re overcommited, you’re out of balance.
    • If your dollar risk is too high, you’re out of balance.
    • If you’re hung over, you’re out of balance.
    • If you’re sick, you’re out of balance.
    • If you need the money, you’re out of balance.
    • If you make too much money, you’re out of balance.
    • You’ve got to take time off. You can’t trade every day.
  • Pay more attention when you account size gets bigger
    • I’ve noticed over the years that when my account has been small for whatever reason, I have been really careful with it. I watch it like a hawk. When my account gets rich, I tend to fall into a habit of neglect. I’m making money. I have profits, and I’m more comfortable. I don’t keep as close an eye on it. That’s very foolish.
  • Take profits out of your account
    • You should spend some profits rather than letting the money stay in your account indefinitely. That’s been important to me over the years. I withdraw money from time to time and take a vacation or buy a new car. From a behaviorist’s standpoint, it gives a sense of reward. It provides conscious and subconscious motivation.

Chinese trade delegation en route to Washington to sign Phase One trade deal – Global Times

Global Times with a tweet update on the matter

US China

The update reads:

The Chinese trade delegation led by Vice Premier Liu He has left Beijing en route to Washington DC to sign the phase one #tradedeal with US officials, a source told the Global Times on Monday. #tradetalks #tradewar

It looks like all is going according to plan and schedule – at least for now – with the deal expected to be signed off later in the week on 15 January.
As mentioned before, the details of the deal will be of particular importance so look towards that bit of information next as to how market participants will tie all of this to US-China trade sentiment in the bigger picture.
So far, markets are keeping more steady in the run up to the trade deal signing with risk faring rather decently today. USD/JPY is still keeping at fresh seven-month highs around 109.90 while gold is down by 0.7% around $1,550 at the moment.

Trump: Big sanctions on Turkey are coming

Trump tweets out a message to Turkey

Brian Kilmeade over at @foxandfriends got it all wrong. We are not going into another war between people who have been fighting with each other for 200 years. Europe had a chance to get their ISIS prisoners, but didn’t want the cost. “Let the USA pay,” they said.

Kurds may be releasing some to get us involved. Easily recaptured by Turkey or European Nations from where many came, but they should move quickly. Big sanctions on Turkey coming! Do people really think we should go to war with NATO Member Turkey? Never ending wars will end!

This is related to the strikes in the northern part of Syria last week. The lira has fallen on the tweet as USD/TRY is making new highs for the day around 5.9350 from 5.9200 levels earlier.

Trump announces fresh tariffs on Chinese products, ramping up rates by 5%

Trump makes the announcement via Twitter

On October 1, Chinia is going to be hit by fresh tariffs.
Here’s the announcement, which was clearly timed to hit moments after the FX close:
For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer. As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very unfair Trading Relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!). Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30% Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!
One thing that’s a bit unclear is the Dec 15 tariffs. I’m guessing those are still exempted until then.
All told, this isn’t that bad. It could have been worse. He’s ramping up tariffs by 5%. It’s not some kind of apocalyptic announcement but it certainly continues the trend of escalation.
trade war

Trump keeps up his attack on the Federal Reserve

More of the same from the President

A couple tweets from Trump as Fed week gets underway:
The Fed “raised” way too early and way too much. Their quantitative tightening was another big mistake. While our Country is doing very well, the potential wealth creation that was missed, especially when measured against our debt, is staggering. We are competing with other…countries that know how to play the game against the U.S. That’s actually why the E.U. was formed….and for China, until now, the U.S. has been “easy pickens.” The Fed has made all of the wrong moves. A small rate cut is not enough, but we will win anyway!
Think he will ease up after a cut? After two cuts? Or not until the Fed is back to zero and buying trillions of bonds?

ICYMI – Trump takes yet another dig at the Fed

Trump doesn’t appear to be relenting his stance ahead of the FOMC meeting

The tweet read:

“We are doing great Economically as a Country, Number One, despite the Fed’s antiquated policy on rates and tightening. Much room to grow!”

With markets already all but certain about a 25 bps rate cut at the end of this month and Powell reaffirming those expectations, it sure sounds like he wants more rate cuts to follow later in the year despite claims of the economy doing “great”.
The issue here is that Trump wants to pursue a currency war now and that is not what the Fed is looking to do. If the Fed is just throwing around rate cuts on the back of some slight worries in the economic data, they won’t have very much ammunition left to deal with a proper economic downturn when the time does come.

Trump voices displeasure over Iran breaching uranium stockpile limit

More sanctions to follow?

US Iran

Trump tweets:

Iran was violating the 150 Billion Dollar (plus 1.8 Billion Dollar in CASH) Nuclear Deal with the United States, and others who paid NOTHING, long before I became President – and they have now breached their stockpile limit. Not good!

This comes after the International Atomic Energy Agency confirmed overnight that Iran has now exceeded its supposedly agreed stockpile limit of low-enriched uranium, which breaches one of the key points in the 2015 nuclear deal.
Even so, reports say that Iran is still a long way off from being able to produce a bomb but when you see Trump tweet something like this, it’s never too long before something happens again amid escalating tensions between the two countries.
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