Coronavirus: Trump slams China over "massive disinformation campaign"

Money Map Press Chief Technical Strategist DR Barton joins Yahoo Finance’s Seana Smith to discuss the market outlook amid the coronavirus, after President Trump tweeted in part that “China is on a massive disinformation campaign."

Video Transcript

SEANA SMITH: We have President Trump escalating his rhetoric against China. Now, in a tweet, he wrote, quote, "China is on a massive disinformation campaign because they are desperate to Sleepy Joe Biden win the presidential race so they can continue to rip-off the United States, as they have done for decades, until I came along!"

So for more on what this means exactly for the market, I want to bring in DR Barton. And he's a chief technical strategist at Money Map Press. And DR, great to have you on the show this afternoon. I mean, let's talk about those comments from President Trump the fact that we are seeing this escalating tension between the US and China. What are the broader implications for the market as a result of this?

DR BARTON: Well, I think we saw some of that this morning, Seana, and we saw with China coming out with their potential new much harsher policy for Hong Kong. And the markets immediately had a big sell-off. We were slightly in the green when that news came out, so this back and forth. And, of course, the US has already responded along with other people in the world about the basically removing the autonomy from Hong Kong there.

So this back and forth is really-- it should be a sideshow to what's going on with the pandemic. But while we're reopening America, while we're waiting to see if there is a surge, if there's no surge, if anything comes of that, I believe this China type news, the back and forth, the tit for tat that we're seeing is going to give the markets these pretty wild intraday swings until something else comes back on the COVID stage to take over.

SEANA SMITH: Yeah, DR, you talk about these wild swings that we have seen in the market. You just take a look at the market's performance this week. And it's evidence of that. So where are you advising clients? Or where are you seeing investment opportunities in the market right now when there's so much uncertainty?

DR BARTON: Yeah, there is so much uncertainty. But you know what we've seen play out over the last almost six weeks. If you look at a chart, it's really been kind of sideways with a little teeny upper bias in the market. So that's going on. So what we're really seeing, I think, in the absence of significant news about fighting the virus, about a treatment for the virus, about a vaccine for the virus is that we're seeing the Fed and Congress with monetary and fiscal stimulus underpinning the market. And that's what's keeping us up here.

We have thrown every bit of nasty horrible economic news at this market that we could think of with huge unemployment numbers, 20 and a 1/2 million-- another 3 million added this morning. You know, we keep seeing all these numbers thrown at the market. And it keeps brushing them off and just keeps inching higher because of all this money that's flowing in. Someday there'll be a reckoning. But in the next few months, I'm just sticking to buying really quality names on pullbacks, Seana.

SEANA SMITH: And DR, quickly. You mentioned the fact that we've seen so much of the stimulus. It kept a floor under the market. But what do you think the market needs in order to keep this momentum going to the upside? What's the catalyst that you're looking for?

DR BARTON: Yeah, I think the catalyst, if we can do some things-- I think one of the big ones that we're going to see in two to three weeks. But the first one we're going to see is with states reopening here in the US-- if we do not see a significant surge in new cases, new hospitalizations, new deaths-- if we can do this in a wise, intelligent fashion, if people everywhere can take care of themselves and others with distancing and all the right things, that will give the market a big push up long before we see an effective therapy to treat this thing or before we see a good trial, a good phase II trial on a vaccine. That lack of a surge in two to three, four weeks is going to be the big thing. That could push the markets up hugely.

SEANA SMITH: All right, DR Barton, chief technical strategist at Money Map Press. Always great to have you. Thanks so much for taking the time.

DR BARTON: Thanks, Seana.