Chinese President Xi Jinping decided to visit India first before heading to meet Donald Trump in the United States. Smart move. Load up on the pleasant diplomacy before the hard stuff.
This is the geopolitical equivalent of eating dessert before dinner because you know dinner is going to be a sh*t sandwich. Xi gets to smile and shake hands in New Delhi, build some rapport, collect some diplomatic wins. Then he flies to Washington where Trump will probably mispronounce his name and threaten tariffs on soybeans.
Retail traders saw this headline and immediately bought call options on companies they think sound Chinese. They cannot find India on a map. They definitely cannot spell Jinping without autocorrect. But they're certain this means their portfolio of penny stocks is about to moon because two world leaders are getting on airplanes.
The technical analysis here is bulletproof. Two heads of state meeting equals chart goes up. More heads of state equals chart goes up more. If Xi visits three countries the S&P hits 10,000. That's just math.
Trump probably doesn't know Xi is coming until someone tells him the morning of. Xi has been planning this for months. He's coordinating with multiple governments. Trump is coordinating with whoever happens to be standing near him when he feels like talking.
But sure, your moving averages will predict how this summit goes. The 50-day crossover will tell you everything you need to know about Sino-American trade relations. The RSI will signal whether Trump and Xi become best friends or start a currency war.
Some guy named Derek in Michigan just mortgaged his house to buy leveraged ETFs because he heard "China" and "diplomatic" in the same sentence and assumed that meant his technical setup was finally going to pay off.
It won't.
Photo by Camillo Corsetti Antonini on Unsplash
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