BREAKING: Insiders Say “TRADE WAR OVER”
You’ll be shocked at what my research team and I just found…
Last week a HUGE anomaly hit the market. And our indicator caught it.
This is the same indicator that I use for my paid-up subscriber research.
But today, I’m revealing what it just caught for everyone, so you can see for yourself how powerful it is.
In a moment, you’ll see the truth behind Trump’s trade war… and a HUGE trade that insiders are already beginning to pile in on.
But the story is unfolding as I type, so let’s get to it…
Mark My Words: The Trade War Is OVER
The U.S.-China trade deal is here and the smart money is piling in to ride the bullish news higher.
Skeptical? I get it.
We’ve had false hope after false hope recently…
Trump will claim progress and Xi will deny any such discussion ever took place.
And with the market ultra-sensitive to any news, the back and forth is enough to give investors whiplash.
So two weeks ago, when the president claimed “Phase One” of the deal had been reached… I hesitated to believe it.
And I wasn’t the only one, Wall Street is still holding its breath waiting for any substantial news.
But those familiar with the matter know how close we are to inking a deal…
And you better believe they’re going to make money off it if they can.
These insiders are tricky though, they don’t want to risk tipping off the rest of the market. Especially when it comes to huge matters like a U.S.-China trade deal.
So instead of buying up stock that can be easily spotted, they’re operating in the options market.
That’s because while regulators can easily spot individuals trading a large block of stock shares, they can easily miss the smaller amount of options needed to bank a massive gain.
And the best news for us: my indicator tracks these moves in the options market, alerting me when there is any unusual buying activity concentrated on certain stock options.
So when the recent buying activity tripped my indicator, I knew a REAL trade deal was coming.
In fact, their recent buys are a dead giveaway.
The $1.5 Million Bet
Hundreds of thousands of call options. All in the past week alone. All concentrated in a handful of trades with the most to gain when a deal is finalized.
Let me explain…
It’s no secret that a trade deal would send U.S. stocks soaring.
However, the real winners will be Chinese stocks. The U.S. is China’s biggest trade partner, after all. So Chinese companies have the most to gain when a deal is closed and investors rush back into that market.
Therefore, the best way to profit from a deal is to get into those Chinese stocks… or more simply Chinese ETFs.
It makes sense. ETFs track the moves of a collection of stocks and are more prone to gain from trends instead of individual company news.
While an ETF might make a 5% move in a year, its options could triple that return in less than a month.
So if you knew that a deal was coming, Chinese ETF options would be the best place to secretly set yourself up for major profits when a deal is announced.
And that’s exactly what’s happening.
Just take a look at this chart…
On Tuesday, one trader — most likely someone with inside trade deal information — bought $1.5 MILLION worth of EEM December 2019 $44 call options.
The iShares MSCI Emerging Markets ETF (EEM) mirrors the MSCI Index, an index heavily weighted in China.
Take it from a former floor trader…
This means somebody fully believes EEM will climb higher than $44 by December 2019… it’s the only way they can profit.
In fact, they don’t just believe, they know. Because if they’re wrong, they lose it all when the call options expire in two months. And you don’t just bet $1.5 million unless you know you’re going to win.
And this wasn’t the only big purchase signaling a trade deal with China is on the horizon.
My indicator also picked up trades totaling $720,000… $943,000… and $2.8 million over the last week. And many pure-play China ETFs — like FXI, CHAU, KWEB, and YINN — also saw huge orders.
Meaning they’re all telling the same story…
On Day 483, It Ended
In the midst of an impeachment scandal, it could be that Trump is looking for a win. China too could use a win, as the country continues to struggle with Hong Kong protestors and slowing growth.
Maybe the president, the dealmaker he is, finally struck an agreement too sweet to pass up.
Or it could be that on the 483 day of this grueling trade war, all parties conceded that it was time for it to come to an end.
In any case, the proof is staring us in the face…
The smart money is betting big on China, confident a surge is imminent.
And now, there’s no need to wait for the announcement next week. In fact, that would be the worst thing to do.
If you delay, you risk getting in after the pop and lowering your profit potential.
So before that happens, consider checking out the ETFs with unusual activity — EEM, FXI, CHAU, KWEB, or YINN.
The time to make your money on this trade war is now.
And get ready to cash in when a deal is announced!
Yours for Weekly Profits,
Floor Trader, The Daily Edge