Markets will make ATH if we get a deal. And will continue to make new highs depending on the nature of the deal. For now, the market is coiled up like a tight spring on this trade deal crap.
That's how I see it. I bought some Oct SPY calls earlier this morning and looking to add to the position over the next few days if an opportunity presents itself. That might not be the best way risk:reward way to "hedge" for a trade deal. I may have been better off buying calls on XLK or QQQ...maybe even FXI. I'm open to suggestions on how to hedge the outcome of a China trade deal. I hate buying calls btw, but this looks to be a good case to do so...I don't want to be long the underlying if we don't get a deal, but I also don't want to miss out on the upside if we do get a deal.
I don't know options, but from my basic understanding of them, it seems that buying call if you believe a market may go up in the future is a way to limit your risk for a massive payoff. You pay for the premium, and that is all you lose, ever. (Or buy a put in the other direction).