October 8, 2019 8:39am

Pessimism surrounds U.S. - China trade talks

Why can’t or shouldn’t “our” universe be a safe haven for the oversold to be bought?

Sector news: Nada, nothing or zilch that will move the sector

Insight is about understanding perception and is putting into context what is relevant to expectation fulfillment …


But cannot be imaginative in considering explanations for missing, confusing and often contradictory data while human analysis is able to identify one’s own biases and expectation of what the data might/should/could show!


Dow futures are DOWN -0.70% (-185 points), S&P futures are DOWN -0.66% (-19 points) and NASDAQ futures are DOWN -0.68% (-53 points)


U.S. stock index futures fell sharply on Tuesday morning as investor optimism around the upcoming U.S.-China trade talks faded;

European markets fell as hopes dimmed for a positive result in high-level trade talks between the U.S. and China with the pan-European Stoxx 600 dropping 1%, so far;

Asia Pacific markets gained with major indexes in Japan, South Korea, China and Hong Kong trading higher but, reports said that Chinese officials are growing hesitant to pursue a broad trade deal with the United States.


Data docket: producer price index (PPI) figures for September will be released at 8:30 a.m. ET.



Cause and effect; Bloomberg News reported the White House is looking to limit Chinese stocks within government pension funds. The White House has also scheduled an increase in U.S. tariffs on $250 billion worth of Chinese goods to 30% from 25% on Oct. 15. President Trump has said the tariff increase will take effect if no progress is made in bilateral trade negotiations.

It’s all about market and the resulting affect to “our” universe of equities as the world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer mawkishness.


Why be a target on the firing range!


Monday night’s newsletter heading: “sector equities are finding yet another bottom. October’s volatility has historically spooked investors. Sentiment is an issue, the major concern as Q3 ended with depreciation which continues.”

  • The NASDAQ closed down -26.18 points (-0.33%)
  • The IBB closed up +0.18% while the XBI closed down -0.08%
  • The close was negative with an A/D line of 17/25, 1 flat and 2 acquired;
  • The range of the 17 upside was +0.47% (ONCE) to +5.36% (ONVO) while the 25 downside ranged from -0.05% (ALNY) to -7.08% (BTX);
  • 3 out of the 17 upside had higher than the 3 month average volume;
  • 8 out of the 25 downside had higher than the 3 month average volume;


  • October registered 1 positive, 1 neutral and 3 negative close, so far …
  • September, there were 1 holiday, 11 negative, 7 positive and 2 non reported sessions;


Companies in my headlights – It’s your decision; I provide an idea and context:

*** I’m still of the mind of which road to follow … Wait for quarterly results … BUY and get trampled in the next few sessions or SELL and relieve the anxiety or just HOLD until political and trades/tariff war of word games are defined!.



Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.  All investments are subject to risks. Investors should consider investment objectives.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.