ESU19.CME E-Mini S&P 500 Minute Chart

The overnight session is a wild ride. S&P futures tank out of the gate Sunday evening US East Coast time down as much as -45 points but stage a dramatic recovery after President Trump says China called US trade representatives and want to restart trade talks. Comically, as usual, China state-run media says the Beijing leadership does not know what phone call the president is referring to. Nonetheless, the announcement was timed with the start of European trading at 3 AM EST to boost global stock markets and always protect the wealthy elite class.

S&P futures turn around by a huge 75 handles and now about 15 handles off the overnight top at +14. The S&P futures have traveled 90 handles overnight a huge move down and back up covering 3.1% of the entire range. The put/call ratios are elevated showing panic and fear; ditto the low NYMO. The stage was set nicely for a large tumble in equities this morning and it would have likely been a great buying opportunity for a quickie long trade for a snappy relief rally. Alas, others were thinking same and the S&P futures launch like a rocket. Now there is more likely choppiness ahead as reporters keep questioning President Trump about the so-called phone call.

At the G-string 7 meetings, Trump opined about doing things differently after he thought about the Friday stock market collapse. Humorously, Double-Down Donny doubled-down again saying that he regretted not imposing stiffer tariffs on China earlier. The  light bulb went off in Trump's head that China is simply trying to play out the clock. If Trump is defeated in the November 2020 election, only 14 months away, China's trade war problems immediately evaporate. Of course Trump should have went big and bold and hit the communists hard over a year ago if that was his game plan, but he balked and chose an easier path. This only allowed China to stretch out the trade drama for over a year already.

China wants the ebb and flow of on-again off-again trade talk drama since this allows the commies to keep stretching out the clock and letting all the chips ride on the US presidential election next year. China may want more trade talks but after a couple months or so will break them off again always with the goal of running out the clock.

S&P futures came off the highs a short time ago when Trump was questioned about the phone call that came from China; the phone call story smells like BS and the president kept avoiding answering the question. The announcement that China wants to restart negotiations is likely more Trump trade negotiation drama.

The Dow Jones Industrials futures print a near 600-point turnaround overnight. As the VIX sustains above 20 and higher, the intraday and day-to-day point moves in the stock market will become larger and more dramatic. Sometimes the big moves will be both ways, on the same day, like today. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.