Trump tweets China to cut tax on U.S.-made cars, revs up auto stocks
WASHINGTON/SHANGHAI (Reuters) – U.S. President Donald Trump said China had agreed to cut import tariffs on American-made cars, buoying shares in BMW (BMWG.DE) and Daimler AG (DAIGn.DE) who manufacture in the United States for export to the world’s biggest auto market.
Shares of Chinese car dealers also perked up on hopes that such a move could revitalize the domestic auto market that is poised for its first annual sales contraction in decades amid cooling economic growth and a debilitating U.S.-China trade war.
Tesla Leads US Carmakers Higher After Trump Tweets on China Tariff Removal
U.S. automakers surged in pre-market trading Monday, while their European rivals booked the biggest single-session gains in more than a year.
President Donald Trump said China had agreed to lower tariffs on cars imported into the world’s biggest market following an agreement with Xi Jinping to suspend their simmering trade war at this weekend’s G20 summit in Argentina.
Today's Trade of the Day | 11-1-18
IBM stock prices makes new 52 week low and trades into the "Failed Test" bottoming pattern. Today's gap higher trades through the $125 buy-stop trigger so we are letting today's higher open pass. But we like the trade and will game plan a $124.75 limit order to buy and initiate a new order flow trade long.
Very important not to chase this morning's higher open. Very small edge to order flow means today's massive gap higher in the stock market should find sellers before stock prices resume higher.
Stock Trading Ideas Monday 12-3-18
Bullish Cash Flow: WDAY, WB, ABBV, AAL, CAT, DE, GILD, DAL, PEP, CELG, AMGN, NKTR, LRCX, ADI, HD, TSN, ETSY, IBM, MA, UNP, CRM, TWLO, MU
Bearish Cash Flow: sfm, atvi, viab, pe, nfx
Bullish Breakouts: WDAY, SPLK, ABBV, DAL, PEP, BABA, AMGN, MRK, CCI, PCAR, LLY, W
Bearish Breakouts: sfm, viab, pe, cf, slb, trgp
Double Average Volume: MXIM, FANG, TJX, DIS, PAGS, AET, UTX, WDAY, MAR, LLY, ROST, GRUB, ADP
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Tape Reading the SPY ETF
SPY ETF set to open at $280 resistance. This exaggerated move higher sets up a trap for inexperienced traders. The odds of the stock prices trading higher after the stock market opens is small. The odds of following through higher this week, is good.
Chasing this morning's bullish news will most likely leave you getting stopped out for a loss if you buy into the news, and into the SPY resistance. I like the long (buying) but after the market absorbs the news and settles back down for a better price that makes sense from a reward potential/trade expectation perspective.