The market has experienced some serious turbulence this morning as a new front has been opened up in the U.S.’s trade war. President Trump announced new 5% tariffs on all Mexican goods until Mexico takes additional steps to stem illegal immigration into the U.S.
While that is certainly a troubling development for Wall Street, the greater concern is the negative turn that relations with China have taken. It now seems that dealings have turned somewhat hostile, with both nations refusing to back down. As I’ve said before, China is in a better position for prolonged trade deal negotiations, as they continue to be able to steal intellectual property.
But that’s not even the most troubling action by the Chinese. Territorial disputes and military buildup in the South China Sea have increased tensions to a boiling point. Disturbing satellite images prove China has a new super weapon capable of killing thousands of Americans. Now the Pentagon is racing to funnel millions to a small $6 defense contractor with a mind-blowing new technology designed to put America on top for decades. Once this story breaks, this tiny firm could go nuts. Frankly, you need to see this before it’s too late…
We’ll also take a look at some important new resistance levels to watch as the market takes hit after hit with each new trade war headline – and one in particular that I believe will hold and prevent the market from falling lower.