The real action in equities, and probable all time highs for the indices will come in the first quarter of 2019.
From ZeroHedge:
For now, FX markets remain the only 'liquid' course of reflection on the Trump-Xi trade-truce 'deal' and China's offshore yuan has spiked over 6 handles (back below 6.90/USD) implying a solid jump at the open for US equity futures...
A big jump for sure in offshore yuan but remains well below the early Nov spike highs...
...And extrapolating from last week's moves, offshore yuan implies an open for S&P futures around 2800...
...Which, as we noted earlier, is exactly in line with one "base case" which correctly predicted that a Truce - in which existing tariffs stay in place - is the most likely outcome (with a 70% chance), while also accurately predicting a 3 month ceasefire, the agreement will be enough to get the S&P to 2,800...
...MORE
