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Trading Strategies: Don't Trust Trade Deal News Yet

The news is reporting that a trade deal is in the final stages, but is it time to trade on the good news?

In the past six months, we've been treated to numerous news snippets about the trade deal. 

On Sunday, another one crossed the wires.

The Wall Street Journal reported that the trade deal is coming to a close, meaning that the U.S. and China will be expected to come to an agreement soon. 

The market rallied off of the news Monday morning, before tumbling. 

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Feel familiar? The market has had similar reactions to other trade headlines. 

TheStreet's Martin Baccardax said that he believes that a deal is in the final stages because more and more details about the talks are emerging.

However, TheStreet's Katherine Ross took an alternative approach based on U.S. Trade Representative Robert Lighthizer's comments that the trade talks are a "process."

Both Ross and Baccardax agreed that one thing is certain--investors need to approach any trade deal news cautiously. 

Watch to see why investors should be careful before trading on any news--good or bad. 

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