📈 China Cuts Rates

This is bullish for US equities.

China Cuts + Stimulus

China announced that they are cutting interest rates by 50 basis points and providing significant stimulus to their economy.

This frees up the equivalent of $142B into China’s economy - this is a huge deal.

Stock Market Impact

Because of this, we saw specific moves in the market today. First, Chinese names broke out, unsurprisingly. However this affects far more than just Chinese stocks.

Oil demand will increase, commodities such as copper, gold, and silver are breaking out, and uranium pushed.

Keep an eye on stocks such as: FCX SCCO GLD TECK

This is only the start of what we will see. I would keep an eye on these sectors.

Ultimately this move by China is bullish for US equities but you need to understand where to focus and why to focus on those areas.

I run through it in depth in this video: