There's an old market adage that says, "Buy the rumor, sell the news."
Simply, it means that short-term traders should buy the stock of a company on rumors of catalyst events that would be beneficial for the company, such as acquisitions or new product launches.
As excitement for the event rises, so too does the stock price as investors pile in. Traders then hold their shares until shortly after the event (the "news") occurs.
It's a fairly basic strategy, but one that can yield big returns...
There's an old market adage that says, "Buy the rumor, sell the news."
Simply, it means that short-term traders should buy the stock of a company on rumors of catalyst events that would be beneficial for the company, such as acquisitions or new product launches.
As excitement for the event rises, so too does the stock price as investors pile in. Traders then hold their shares until shortly after the event (the "news") occurs.
It's a fairly basic strategy, but one that can yield big returns...
Despite its population of 1.3 billion people and economy on course to be the biggest in the world, China has yet to be a military threat to the United States because of its navy.
But China is trying to change that in a hurry.
And a recent aerial photo captured the scope of China’s fast growing naval development.
Only days after hitting an all-time high of 28,090.21, the Dow Jones Industrial Average slipped 1.15%, closing Thursday, Nov. 21, 2019, at 27,766.29.
That's a small loss considering that the United States is threatening China over its control of Hong Kong.
With Congress passing the Hong Kong Human Rights and Democracy Act this week, which now goes to the White House for the president to sign or veto, markets could see more profit taking, or they could do what they've been doing: ignoring bad news and moving steadily higher.
Here's what markets are facing as a new front on America's trade war with China opens up...
The mainstream business news is laser-focused on the trade dispute with China. President Trump's fight with China's Xi Jinping is just about all you hear or read about in the business news.
Even the string of all-time market highs these past two weeks had a tough time getting any press. The pundits quickly got back to talking about tariffs and trade negotiations, as if nothing else mattered.
But there's a much more important story developing right under our eyes, right in America's heartland. One that no one is talking about, probably because it's not very convenient.
Of course, the truth rarely is.
But the consequences for your finances - and for swathes of Americans - could be tremendous...
Last Friday, a "flash crash" hit Chinese stocks trading on U.S. exchanges. China's $440 billion equivalent to Amazon, Alibaba, dropped 7% in just four minutes.
Those stocks tried to recover early in the week but are now back at the levels hit last Friday.
On the surface, it looked like a small market "blip," or hiccup. But the truth is, this was nothing less than a ferocious salvo of fire in a war, just as surely as if it'd been two destroyers at sea blasting away at each other.
It's a different kind of war, though - economic war.
Some of the investment trends we talk about are downright electrifying.
Others, like Keith's "war, terrorism, and ugliness" trend, is nowhere as pleasant, but it's important to grapple with the issues head-on as globally oriented investors.
So far, U.S. financial markets have largely shaken off the mass unrest in Hong Kong, but that could instantly change.
Keith wants to make sure you're ready if it does...
As the political climate in Hong Kong reaches a boiling point, investors wonder how this will affect the U.S-China trade conflict.
Chief Investment Strategist Keith Fitz-Gerald has predicted what’s coming next as the trade war wages on.
Many people would do anything to have a crystal ball into the future.
You could see if you're going to get that dream job...
You could find out what your children will become when they grow up...
You could know where you'll be when you retire.
The possibilities are endless if you could see the future.
Many of my colleagues, if asked the question of what they would do if they could see the future, would say that they would like to look at the financial markets and pick the best trades to make them rich.
I'd say that's a popular choice.
But for me, if I had such a power, I would be looking at more than just the financial markets.
There are many factors involved in what makes a particular company a good trade, and much of it depends on geopolitics.
So, if I had a crystal ball, I would be looking at the geopolitical situation only a few months into the future.
On the other hand, with today's geopolitical tensions, I don't think I really need a crystal ball to tell me what's going to happen.
In fact, all I really need is a history textbook...
Most Americans have never thought twice about intellectual property, but Keith's here to tell you that it's absolutely critical to your prosperity that you understand what's happening right now.
To put it simply, our nation depends heavily on IP - and so does your money.
But a recent poll revealed that China has stolen intellectual property from 1 in 5 American companies.
Here's why Trump needs to be absolutely tough on China when it comes to this issue...
Trade war fears are at an all-time high again following the Trump administration's latest tariff tweets.
Despite all this, our Technical Trading Specialist is going to name some entire sectors that are going to clean up, thanks to billions poised to come off the sidelines around the world.
And that money won't be going to China...
President Trump tweets, and all hell breaks loose in the markets.
Over the weekend, with hopes of a final deal with China on trade due by Friday, President Trump stirred the pot.
Chinese stocks have been hit especially hard. Since Friday's close, the SPDR S&P China ETF is off nearly 6%.
For the last 10 years, investors have reaped legendary returns from the America's longest bull market ever.
But expecting this record-breaking growth to continue is a mistake.
There's a lot to like about this market...
It's technically strong, and leadership among the sectors hasn't changed. This is good.
The Nasdaq Composite and Russell 2000 indexes are out above their 200-day moving averages as of Friday; all four of the major indexes are back above this key trend line. The CBOE Volatility Index (VIX) has settled below the critical 15-point level and was last seen headed south. I'm lovin' it.
And of course, more than 80% of the S&P 500 has reported earnings. Seventy percent of 'em beat earnings expectations, and 60% trounced revenue expectations. Phenomenal.
Finally, a raft of weak-ish economic data had traders taking some profit off the table last week, which, in conjunction with a sagging VIX, suggests we're done with the selling for the time being.
The trend is your friend, I always like to say, and the trend is "up."
But we still have to make it past the China trade deal - or lack thereof.
China will soon become the largest economy in the world, and that has investors eager to leap feet first into Chinese stocks.
And if you are looking for the best Chinese stocks to buy in 2019, our latest pick is dominating the automated manufacturing sector.
Plus, it could potentially double your money...
China's industrial automation market is already a global leader, and installations are increasing at a 58% annual pace.
That means big windfalls are on the way for one automation leader.
And it's already due for a 100% gain in the very near future.
