China Is Done Playing “Tariff Tag,” It’s Now Looking To Crash The Markets

China has gotten tired of playing “tariff tag” with the Trump administration. It’s now playing a new game called the “devalue stock dump.” It consists of China aggressively devaluing the in an effort to crash the US stock market.

If you think I’m being overly dramatic here, have a look at the below chart. This current devaluation is already on par if not worse than those of August 2015 and January 2016.

UUP-CYB

UUP-CYB

By the way, those last two devaluations (red boxes) resulted in the dropping 11% and 12% in less than one week.

SPX Daily Chart

SPX Daily Chart

Put simply, China is done messing around. It is actively trying to crash the US stock market to send a message to the Trump administration. China knows that President Trump views the stock market as a “report card” on his performance as Presidency.

SPX Weekly Chart

SPX Weekly Chart

Bear in mind, most Emerging Markets (including China) are already in bear markets, having dropped ~20%. If the US stock market follows suit, we’re talking about the S&P 500 down in the 2,3-00-2,400 range.

The time to prepare for this is NOW before the carnage hits.

On that note, we are already preparing our clients with a 21-page investment report that shows them FOUR investment strategies that will protect their capital when and if a stock market crash hits.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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