China US trade issues to impact markets.....

China US trade issues are accelerating into overdrive with arrest of Huawei CFO who is the daughter of founder.

China has warned US & Canadian Ambassador in China for consequence of arrest of CFO.

Friday's TAPE ignored good news of slowing job growth.

S&P 500, Nasdaq, SOX  & RUT are into " death cross "

Have not seen so many death cross in a long time, does not bode well for this market.

S&P 500 & DOW are close to 52 wk low

Nasdaq getting near 52 week low

RUT closed @ new low for the year.

SO...Technicals are horrible to say the least...

IF we plunge below 52 week low in major indices, we may lose several hundred points in a blink.

Monday could be very critical IF we are to hold support.......

How to play this TAPE depends on your individual trading style, some are for very long term, so nothing to worry there, all this will pass soon.

Those who love stay 100% invested and expect quick return, this is not the market for them, suggest cutting exposure into 50%...

Those who nimble with safe stocks like FEYE CMG VMW TSLA they may be OK with keeping all 4 in a basket of equal $ value.

Those who have taken an inverse position in last 2 months, they are enjoying the best return in a year.

Good luck with your own interpretation of this TAPE and your own comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed