Monday Millionaire Briefing: 2 Earnings Trades to Watch As Trade War Pressures Mount

Hello, 10-Minute Millionaires!

Here’s a quick look at some of the news-driven plays I’m watching this week. In addition to the retail earnings below, don’t forget to read up on the real estate play I’ve got my eye on.

  1. Markets are still digesting the Fed “disappointment” and the ups and downs (mostly downs, so far) of tariff news. The lows made last Monday after the combined tariff war and currency war threats had spooked markets have held. There was a -7.3% drop from the intraday high on July 26 to the intraday low on August fifth. That’s very important as the market stabilized last week and even popped up on Thursday when traders were appeased by the possibility of further Fed rate cuts before the end of the year. The key things that I’m watching include the 2,800 level on the S&P 500 (still 4.3% below Friday’s close) and whether the volatility remains at its high levels (Monday morning’s pre-market says yes…).
  2. Earnings Retail Behemoth #1: Walmart (WMT) on Thursday before the open. This kicks off the late-in-the-quarter retail sector earnings. A negative outlook from WMT, especially tied to pricing impacts from tariff troubles could doom the whole sector before the smaller players even get to have their say. WMT has been impressive as they continue to grow their offering on the web and through services like delivery and curb-side pickup all leading the stock to new all-time highs last quarter. This reporting session will see the guidance going forward as a much bigger deal than results since WMT’s outlook will color the whole retail earnings landscape.
  3. Earnings Retail Behemoth #2: Alibaba (BABA) on Thursday before the open. The online giant from China will also have its forward outlook weigh more heavily than actual numbers. Like WMT, BABA’s thought on tariff impacts going forward will have a huge impact on the stock itself, other major China stocks and even on the U.S. markets.

The next two plays I’m watching sit in the lucrative tech and cannabis sectors [….]

[To see D.R.’s full briefing, 10-Minute Millionaire Insider subscribers can read on here]

The U.S. government has found itself a new cash cow: China

The US government has made $55 Billion from tariffed Chinese goods this year.

In the month of February alone, the U.S. collected $5.08 Billion from Chinese imports, that’s 89.8% more than the year prior.

We have to agree that once the government finds itself a new source of revenue it’s hard (and some say impossible) for them to reverse the course.

This is looking like the future of U.S. China relations and will definitely be a stain on our history.

Let us not forget that China is a global superpower and tensions never cool easily when a superpower is slighted. You need look no further than the Cold War. Nearly 50 years of global unease left generations of Americans on edge to this very day.

I say this because my colleague, Dr. Kent Moors, a high ranking intelligence office who helped take down the Soviet Union, recognizes this as the precursor to another cold war.

Escalating tension against China in the form of this trade war, may not be in our favor as China now has the advantage militarily.

Dr. Kent Moors contacts in the intelligence community would have you look at China’s recent ramping of armaments in the South China Seas.

There’s one weapon that has been deployed by China that has the Pentagon on high alert.

This new weapon is capable of endangering countless American soldiers – and it’s pointed right at the target on our backs…

Read More.

Great trading and God bless you,

D.R. Barton, Jr.

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