China & Iran In The Firing Line
Despite the next round of trade talks being just under two weeks away, President Trump didn’t shy away from attacking his long-term rivals during his speech to the UN this week. Commenting on issues which he has long campaigned against during his presidency, Trump told the audience: "Not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced technology transfers and the theft of intellectual property and also trade secrets on a grand scale” adding “I will not accept a bad deal with the American people,"
Trump’s comments were not simply limited to attack China, however, Trump also addressed his other enemy Iran. Speaking on the issue of national security, Trump said that the global community have a duty to act, in countering the threats posed by Iran. Trump went on to say that "No responsible government should subsidize Iran's bloodlust," adding that "As long as Iran's menacing behaviour continues, sanctions will not be lifted. They will be tightened."
However, Trump was keen to steep his comments in justification, saying "Iran's leaders will have turned a proud nation into another cautionary tale of what happens when a ruling class abandons its people and embarks upon a crusade for personal power and riches,"
With China and Iran checked off the list, Trump then moved on to another favourite: the wall. Commenting on the issue of border security, Trump was again keen to attach the issue to that of human rights abuses saying "when you undermine border security you are undermining human rights and human dignity." Trump continued, saying of the illegal immigrants entering the US "Their youth is not taken care of and human capital goes to waste. The receiving countries are overburdened with more migrants than they can responsibly accept and the migrants themselves are exploited, assaulted, and abused by vicious coyotes,"
Trump Attacks Social Media
On a newer note, Trump also raised the issue of social media allegedly displaying anti-conservative biases, which has been a key irritant for Trump recently. On this note, Trump said "A small number of platforms are acquiring immense power, over what we can see and over what we are allowed to say," he said.
"A free society cannot allow social media giants to silence the voices of the people," he went on. "And a free people must never, ever be enlisted in the cause of silencing, cancelling or blacklisting their own neighbours."
In all, Trump’s speech was largely in lines with everything we have heard from the President before though does raise questions around the likelihood of a US -Sino deal being done, even partially, given the level of opposition which still remains.
Impeachment Threat
Away from the UN speech, the other major headline concerning Trump this week has been that of official impeachment proceedings beings launched against him. Speaker Nancy Pelosi made the announcement on Tuesday, saying that despite having resisted earlier calls for such action, she was finally pushed to action over the Trump administration’s refusal to hand over a whistle-blower complaint against Trump.
Pelosi went on to say "This week, the president has admitted to asking the president of Ukraine to take actions which would benefit him politically," Pelosi said. "The actions of the Trump presidency revealed dishonourable facts of the president's betrayal of his oath of office, betrayal of national security and betrayal of the integrity of our elections."
These comments refer to Trump having admitted to calling the Ukrainian president in July, along with aides, to discuss Joe Biden in the name of “fighting corruption” in the US. Trump has promised to release full and unredacted transcripts of the conversations yet so far has only released a call summary which is not a verbatim transcript. Commenting on the issue, Joe Biden said "If the president doesn't comply with such a request from the Congress, he continues to obstruct Congress and flout the law, Donald Trump will leave Congress in my view no choice but to initiate impeachment," adding, “That would be a tragedy but a tragedy of his own making."
Technical & Trade Views
S&P500 (Bullish above 2905, targeting 3031)
S&P500 From a technical and trade perspective. Price continues lower towards a retest of the highs around 2938. I will be monitoring price action as we test this level looking for reversal candles between here and the monthly pivot at 2905 to set longs for a renewed push higher towards the monthly R1 at 3031. If we work through bids at these levels I will reassess on a move deeper.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!