How KKM's Dan Deming Is Trading the XLF

The video discusses market volatility in May 2019, focusing on the impact of trade tensions with China and the Federal Reserve's monetary policy. It highlights the persistent headline risks and the role of interest rate cuts by central banks globally. The discussion compares the influence of trade and the Fed on market movements, with a focus on the VIX index and intraday market changes. A bullish trade strategy example is provided, illustrating potential profit opportunities.

What factors are contributing to the current market volatility according to the text?

What role does the trade situation with China play in market dynamics?

In what ways have global central banks responded to economic conditions recently?

How has the Federal Reserve's stance affected market expectations?

Which macro factor do you think is more important for traders: the Fed or trade? Justify your answer.