Related Topics
Stocks , Investing

U.S. / China Trade: Why the Media's Favorite Market "Catalyst" Misleads

Learn the actual driver of the stock market's trend

by Bob Stokes
Updated: May 30, 2019

My, oh, my!

For months on end, the financial press had linked the stock market's daily price action to the latest update in U.S. / China trade talks.

This May 23 New York Times headline is a representative sample:

Stocks Slide Over Worsening U.S.-China Trade Tensions

The trade news was also negative nine days earlier. On May 14, CNN had this headline:

US-China trade talks at a halt...

Yet, the Dow Industrials closed that day more than 200 points -- up.

Point being, to rely on trade news as a "predictor" of what the stock market will do is a tricky notion.

For example, at 4:26 a.m. ET on Nov. 27, CNBC ran this headline:

Dow and S&P 500 rise on hopes for a US-China trade truce

Yet, later that very same day (1:43 p.m.), CNBC had to report that:

Stocks fall as investors fear trade war

In other words, the U.S.-China trade conflict made the stock market rise, then fall -- even though nothing about the conflict had changed during the nine hours between those headlines.

This type of fast media switch-a-roo happens far more often than many investors realize.

The actual driver of stock market prices is investor psychology, which you can actually see in the Elliott wave patterns that unfold in stock market charts.

These wave patterns repeat themselves at every degree of trend. Hence, they are predictable.

Learn what EWI's analysts are saying about the stock market's current Elliott wave structure by tapping into our insights risk-free for 30 days. Look below to learn more.

Take YOUR Place Among (the Few) "In-the-Know" Investors

"In-the-know" does not mean “people with a crystal ball.”

It means you can recognize the patterns that unfold in financial market charts.

It means you are able to interpret those patterns NOW to gauge where the turns and trends in price will move NEXT

… in markets like stocks. Bonds. Gold. Silver. The U.S. dollar.

All these markets are on the cusp of BIG turns. (Some have already rounded the corner.)

Risk-free for 30 days, learn what our subscribers already know.

Here’s how …

Elliott Wave International’s Financial Forecast Service

All month long, FFS shows you the patterns in U.S. stock indexes, bonds, gold, silver, the U.S. dollar, as well as market psychology and cultural trends. We show you where the trend is now, and when prices should turn -- specifically, we show the pattern at multiple degrees of trend, with precise risk/reward calculations. If you have fewer surprises, you can be better prepared.

Here’s how it works:



Subscribe now and read the current issues within FFS.



Fine-tune your portfolio plan.



Relax. Watch the markets with your targets in mind.

Your Financial Forecast Service Team Helps Put YOU in Control of the Market’s Trends and Turns

Your Financial Forecast Service guides -- three of the best-known market analysts in the world:

  1. 1. Robert Prechter, Author of 16 market-related books, New York Times Best-Selling Author and Editor of Elliott Wave Theorist
  2. 2. Steven Hochberg, Editor of the Short Term Update and Co-editor of The Elliott Wave Financial Forecast
  3. 3. Peter Kendall, Author of The Mania Chronicles and Co-editor of The Elliott Wave Financial Forecast

As featured in:

Here's what you get with the Financial Forecast Service

Every Month

At the end of each month, you get a 30-60 day look ahead at the markets. Elliott Wave Financial Forecast lays out expected trends and turns in stocks, gold, USD and bonds.

Three Days Per Week

At market close every Monday, Wednesday, and Friday, you get the Short Term Update, alerting you to what’s changed and what’s upcoming in the next several days.

Latest Research

Every month, Robert Prechter sends you his latest research about waves of social mood in the markets in the Elliott Wave Theorist, so you always know the full picture.

You can be ready for risks and opportunities that catch most investors by surprise

Risk-Free, Start Your Subscription Now


for 1 month of unparalleled market insights