This has been headline driven market, so let's focus on that today
China and Trade - China threw a zinger out before Chairman Powell was to speak. Needless to say the markets quickly went negative
Powell's Jackson Hole speech - As we had expected, he wasn't dovish enough for the markets. Saying he was going to rely more on the data, of course we have heard this before. Markets go flat.
President Tweets....Again... If anything he is consistent on shaking up the markets and this one was a doozy! We have been saying for months there will not be a deal, knowing China will never make one. I do think we need trade balance, but China doesn't work that way.
So what now? With this rocky news day, Gold soared, Treasuries continued there move lower and out late cycle sectors have fared very well. We are still holding 13% in cash and as you see from the short term chart below, that has been a good thing. Range bound and weak volume, will move markets.
As we are getting closer to closing out the summer months and head into one of the choppier times of the year, it's a good time to #staynimble. Headlines, Europe and US Slowing, Inverted Yield Curve, to name a few issues. Take profits, raise cash and be patient.