Look, we get a China deal, we get that trade in better balance, we get equipment not just soybeans, we get China buying Apple (AAPL) products and, most, important, we get them buying our natural gas, creating a huge amount of jobs in Louisiana and Texas?
Then this rally is in its infancy.
I have been saying that stocks are cheap, cheap because Jay Powell was captured by the uber hawks of the Fed and made so many reckless comments. Now they are coming back but they need that extra kick and the kick will come from the Chinese capitulating because their economy is so weak.
You don't believe me?
You ever watch their stock market? I can only imagine how much fire power the government has to spend every night to keep that Shanghai index above 2500. I know the intelligentsia keeps talking about how the Chinese have to win and that they play the long game. These are people who are blind to the ways of the Soviets and to how that nation became a failed country despite abundant natural resources and a fiat balance sheet. Now China doesn't have much in the way of natural resources and is out of public works jobs. They have to come to the table and buy things and encourage U.S. companies not to move their businesses. Believe me, the frantic nature with which are companies are trying to shift from expensive Chinese factories to cheaper East Asian ones is breakneck.
So, put it altogether and you could be in a moment where the Chinese cave, the Fed is on hold until we have better growth - something the shutdown, short-term will keep from happening - and you have a bit of the nirvana going, something that will start taking a bunch of sectors back to their pre-September highs. You could see DowDuPont (DWDP) make a move to $60, Honeywell (HON) go to new highs, and even the oils like Schlumberger (SLB) , with a good quarter this morning, have very large moves as they have all been kept down by worries about China. Even Abbott (ABT) could have a run as it has China exposure, too.
That's a lot on the plate. It all depends on the Chinese realistically offering a path and our government taking it if the offer is for real.
(Apple, DowDuPont, Honeywell, Schlumberger and Abbott are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL, DWDP, HON, SLB or ABT? Learn more now.)
