Part 12/15:
However, the market’s recovery also unveiled the reversal of the initial geopolitical misunderstanding. China clarified that their export controls weren’t intended as a ban, and plans for application approvals remained intact. President Trump’s administration quickly walked back threats, underscoring that escalation was now off the table.
This rapid turnaround—prompted by traders who recognized the misinterpretation—resembled the classic playbook laid out by analysts like Cesare Beccaria, with a routine of cryptic signals, panic, swift resolution, and then resumption of bullish momentum.