HomeHome SearchSearch MenuMenu Our productsOur products

Goodbye China and hello 30,940 for the Dow Jones!

by , 07 October 2019
Goodbye China and hello 30,940 for the Dow Jones!
Trump may have imposed 100s of billions of dollars on tariffs in the US China trade war and it seems he isn't about to stop there…

In fact, the trade war could escalate to a new level of madness where we see the US delist a number of Chinese companies from the US stock exchanges.

Just to put it into perspective, in February, as per government data, there were 156 companies that traded on the US exchanges with a market capitalisation of over $1.2 trillion.

So, the big question is how could this looming threat mean a 15.98% rally in the Dow Jones?

Let me explain…
  Recommended:
________________________________________
 
 
 
________________________________________
 
Goodbye Chinese stocks on US exchanges
 
On the 10th and 11th of October, the Trump administration is scheduling talks between Washing and Beijing about the trade war between the US and China. 
 
Not only will they discuss and negotiate the trade terms, but also talk about the possible delisting of Chinese companies from US stock exchanges as well as limit the US investors exposure to Chinese markets through government pension funds…
 
On Friday we saw a number of Chinese stocks shed 5% to over 10% with investors pulling out of Chinese stocks listed on US stock exchanges including Alibaba and JD.com.
 
So, what would happen if these delisting’s took place?
 
First this could lead to a stronger dollar!
 
According to Senior US economist, Gary Hufbauer explained on a macro-economic level,
 
“By prohibiting investment in Chinese companies, Trump could inadvertently strengthen the dollar and cause interest rates to fall further. If forced out from China, investors might park their funds in US Treasuries.”
 
He also added,
 
“If he were to do that, there would be questions as to whether he’s setting a precedent for other countries he doesn’t like” Hufbauer was slightly concerned that President Trump could do the same with Europe and Airbus.
 
We then had CNBC’s Jim Cramer, who supports the notion of blocking US investments in China, who tweeted:
 
 
 
 
Whether the action is good or bad for the economy, the charts couldn’t care less.
 
In fact, one thing I know is that the Dow Jones chart is showing major upside to come.
 
________________________________________
 
“The COIN KING that could turn R500 into R110K!”
 
I’d like to rush you a copy of my book, Crypto Revolution, right away.
 
Inside you will find everything you need to understand this financial revolution…
 
And take maximum – potentially life-changing – advantage of it.
 
Including the name of the coin I am calling “The Bitcoin Killer”…
 
A cryptocurrency that could ultimately climb 20,000% from where it sits today.
 
That’s the kind of move that turns R2,500 into R500k over the longer term.
 
You’ll get the name of that crypto…
 
My full case for why it could rise to become the #1 crypto in the world…
 
 
________________________________________
 
This Upside-Down Triangle could strike a + 15.98% whammy for the Dow Jones


 
Looking at the weekly chart of the Dow Jones, you can see since 22 January 2018 the price has moved in a triangular shape, what I call an ‘Upside-down Triangle’ pattern.
 
This pattern has three characteristics (which you can see above):
 
1. A high price (Top of the triangle)
2. A Low price (Bottom of the triangle)
3. A preceding uptrend
 
Once the price breaks above the high price we can expect the buying pressure and demand to continue which will once again push the market higher…
 
In this case, we saw a breakout above the high last month. This tells me, despite what is going on in China and the US, this chart is set to fly to new highs.
 
To calculate its next target, we’ll take the difference between the high and low price and add it to the high price.
  
Target = (High - Low) + High
              = (26,675 - 22,410) + 26,675
               = 30,940
 
This means we can expect the Dow Jones to head up next to 30,940.
 
This is a 15.98% rise which we can take advantage of.
 
How we can profit from the Dows next run up
 
The best way to get exposed to international stocks is to join Trader X’s, Pickpocket Trader service - you can try it here risk-free for 90 days.  In fact in August and September his current track record sits at 5 out of 8 winning trades…
 
Trade well,
Timon Rossolimos,
Analyst, Red Hot Storm Trader 
 
P.S: Trader X is on fire! He closed the quarter with a whopping 257.36% return with five winning trades out of eight… Make sure you don’t miss his next profit opportunity. Read more here…


Goodbye China and hello 30,940 for the Dow Jones!
Rate this article    
Note: 2.75 of 2 votes

Have a trading or investing question? Click Here


Related articles



Related articles


Watch And Learn




Trending Topics