Market’s Surge Seems to Be Predicting a Tariff Deal with China

AAPL, the world’s most valuable publicly traded company, came within 50 cents of the 214.30 target I’d drum-rolled here a couple of weeks ago, when the stock was $15 lower. Ordinarily, I’d suggest shorting it at current levels, especially to subscribers who made some bucks enroute to the target. But on second look, I’m convinced the stock will rise at least another 6% before it reaches its full, juicy ripeness as a short. Short-term, this has bullish implications for the stock market, since a monster like AAPL cannot rally 6% without pulling the broad averages higher. It will have help from another bear-baiter, AMZN, which has yet to achieve the 1936.21 target I sent out to subscribers weeks ago. If the Dow rallies correspondingly into the range 27k-28k, it could only be for one reason: China and Trump have struck a bargain on tariffs and trade. Indeed, we should expect this if today’s 400-point rally in the Dow turns out to be the start of a more significant surge.