Daily Newsletter 10/27/25
U.S. index futures are trading higher this morning, extending last week’s momentum as investors respond positively to signs of easing tension between Washington and Beijing. Reports indicate that China may delay or scale back its planned rare earth export restrictions, while the U.S. is considering holding off on additional tariff increases—both developments helping lift sentiment across global markets.
We have long maintained that the U.S. and China are too large and economically intertwined to sustain a serious, long-lasting tariff war, even though China has engaged in unfair trade practices for many years. While President Trump previously pushed a more aggressive stance toward Beijing, China has shown that it will neither be bullied nor easily pressured. The current softening in tone suggests that pragmatism is prevailing on both sides.
We are positioned for a constructive scenario where potential Chinese stimulus measures and expected Fed rate cuts could act as key positive catalysts for risk assets. The better-than-expected CPI report last week added a welcome tailwind, reinforcing expectations that inflation pressures are trending lower and that monetary policy will remain supportive.
With U.S.–China relations stabilizing, inflation cooling, and rate-cut optimism building, the market backdrop looks increasingly favorable for equities—though short-term volatility may persist as investors await confirmation of concrete policy steps.
Following our successful gold and silver positions, we also capitalized effectively on the outcome of the Argentine elections, generating strong returns from our targeted equity and options strategies. This marks another rewarding phase in our tactical positioning across global markets. All initiated trades and option positions related to this setup can be viewed in the section reserved exclusively for our paid subscribers.
OUR TRADES
We share our short-term trades within the Tactical Portfolio exclusively with our paid subscribers, providing complete transparency. This includes detailed information on our entry timing and pricing. Exits are communicated promptly through chat to ensure timely updates. Our strategies often incorporate complex option structures to capitalize on short-term market movements, reflecting a sophisticated approach to tactical trading.