*~1Best~* Market Timing & Trend-Signals

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New Policy on TRADE DEFICIT: Market Reaction to the news

Thanks, JT

You certainly make good points. Please let us know when you have specific sectors which you are studying and alert us with your observation.

I briefly noted on new policy on Trade Deficit on Friday.=
http://www.cnbc.com/id/17871535

http://www.trend-signals.com/
Taking corrective actions on "Trade Deficit" such as we heard on Friday, 3/30, is a good news as I noted. I consider it as a positive development which I commented during Jan - Feb 2007 when I noted various charts showing increased trade deficit trend. The recent trade deficit is unprecedented high number in our history. Since the trade agreement can't be accomplished by mutual consent, we need to take action as we have seen on 3/30. This development is positive for LT US Economy even though WS can make a point that it is not good for WS. It may not good for particular companies which do international trades, but is good for US workers. The new trade policy may lead the current trade deficit trend to equal trades which are balanced, not trade deficit for us and trade surplus to them.

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The question is how market will react to the news.

While some are taking the news as negative thinking that it is negatively impact corporate profits and future growth, but I consider the new policy on trade deficit/trade balance as positive because any extreme development will eventually do harm to what was intended for good purpose.

What do you think about the development? Anyone?

Have a great Sunday

Best