Trade Tensions and Market Signals Raise Concerns for Investors

According to Foresight News, prominent cryptocurrency investor Garrett Jin recently explained his bearish outlook prior to the market crash on October 11. Jin highlighted technical analysis indicators, such as MACD divergence, showing overbought signals in U.S. tech stocks, A-share tech stocks, and major cryptocurrencies. Historical data suggests a strong positive correlation between cryptocurrencies and U.S. tech stocks, indicating potential risk transfer between the two. Over the past week, the U.S. stock market has shifted from risk appetite to risk aversion, with the crypto market displaying a similar pattern. Since September 26, trade tensions between the United States and China have intensified, yet investor reactions have been muted due to bullish market sentiment. Last Friday, before the market downturn, China announced a "special port fee" on U.S. ships docking at Chinese ports starting October 14, with plans for annual increases. Additionally, China has launched antitrust investigations into companies like Qualcomm. In response, U.S. President Donald Trump has called for a ban on Chinese aircraft flying over Russian airspace. Jin noted that these developments indicate escalating trade tensions, prompting a shift to risk aversion in both A-share and U.S. stock markets before the October 11 crash. While it is uncertain when President Trump might retaliate against China, Jin's internal quantitative system has heightened its risk alert.