Hello traders everywhere. After a Friday close of -2% for all three major indexes, the stock market has rallied today with gains of +1.5% for the DOW and S&P 500 respectfully, while the NASDAQ is posting a +2% gain on the day.
Of course, this move higher comes on a feeling that the trade war with China won't happen or that it won't be as bad as we first thought.
Treasury Secretary Steven Mnuchin said on Sunday he does not expect a trade war between the U.S. and China to take place and President Donald Trump himself said in a tweet Sunday:
"President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!"
Even with the gains today I can't shake one thought out of my mind, and that is this Yo-Yo market that we are in right now. Volatility has a grip on the market right now, and it doesn't show any signs of letting go anytime soon.
Key events coming up this week:
- Bank of Japan Governor Haruhiko Kuroda speaks at the start of his second term.
- China’s Xi gives a keynote address at Boao Forum Tuesday.
- Facebook Inc. Chief Executive Officer Mark Zuckerberg testifies at two Congressional hearings Tuesday and Wednesday.
- U.S. CPI data and FOMC minutes due Wednesday.
- JPMorgan Chase & Co. and Citigroup Inc. report first-quarter earnings Friday.
Key Levels To Watch This Week:
S&P 500 (CME:SP500): 2,741.38
Dow (INDEX:DJI): 24,977.65
NASDAQ (NASDAQ:COMP): 6,630.67
Gold (NYMEX:GC.M18.E): 1,322.60
Crude Oil (NYMEX:CL.K18.E): 63.79
U.S. Dollar (NYBOT:DX.M18.E): 88.53
Bitcoin (CME:BRTI): 6,194.46