After an “amazing” meeting with Chinese President Xi Jinping — at an airport in South Korea, no less — Donald Trump had a lot to brag about yesterday. 

Whether any of it will hold up is debatable, but traders still got handed a new short-term setup on a silver platter.

These are the highlights of the agreement Trump and Xi reached in Busan: 

• For one year, Beijing will suspend export controls on rare earths 
• China will resume buying U.S. soybeans (12 million tons through January, and 25 million tons for the next three years)
• In exchange for lower tariffs, China will crack down on the illicit fentanyl trade, and 
• As a bonus, China agreed to buy oil and gas from the U.S.

So…what do you do with all of that?

Commodities Just Got Interesting

When China starts buying again — especially oil, gas, and agricultural products — it tends to spark what traders call a “reflation” move. 

Big funds rotate into industrials, energy, and ag plays. That isn’t because the fundamentals suddenly changed, but because the narrative did.

And it’s where short-term call options can get real attractive.

If you’re looking to catch fast money, you don’t wait for CNBC to tell you what sectors are “in play.” You watch the volume, look at where institutional flow starts to build, and grab exposure before the herd shows up.

This kind of setup tends to be short-lived, with a two- to four-week window, max. 

You get in, let the headline juice the trade, and get out. 

No long-term thesis required.

Rare Earths = Quiet Catalyst for Tech

China’s promise to keep rare earth exports flowing is a big deal.

Rare earths are mission-critical for everything from semiconductors to military gear. 

If China shuts the door, half the tech sector freezes up. If the supply stays open, that risk premium comes off.

Don’t be surprised to see short-term bullish bets pick up in companies tied to chip production, advanced manufacturing, and clean energy infrastructure. 

Traders will be looking for stability, and some of those names have been oversold on supply chain fear.

A Little Relief Goes a Long Way

Trump says U.S. tariffs on Chinese goods will be “trimmed” from 57% to 47%. 

While it doesn’t seem like much of a reduction, markets are built on expectations, and just hinting at lower trade friction is enough to move stocks that rely heavily on China.

Think of the big U.S. companies that manufacture or sell into China — apparel, electronics, heavy machinery. These stocks are usually the first to react when trade tensions ease.

This is where short-dated options can shine. 

You’re not betting on an earnings beat or a company turnaround. You’re betting on a wave of optimism that might only last a few days — but it’s tradable.

Don’t Get Complacent, Though

Now for the dose of reality.

This agreement doesn’t change the long-term picture. 

China’s track record on past purchase promises is weak. The Phase 1 deal from Trump’s first term fizzled out. 

If relations sour again, the latest deal can unravel quickly.

That’s why you don’t build a portfolio around this kind of thing. You trade and stay nimble. You take profits and move on. 

If you get too cute or hang on too long, this kind of setup can go from green to red before you blink.

But remember: You don’t need to predict the future — just respond to the shift in tone.

Stay street smart,
Jeff Zananiri

P.S. One fast trade could mean massive gains.

This Saturday at noon ET, Danny Phee will reveal a lightning-fast strategy to make some serious gains.

There’s no dragging anything out. You’re just in, out, and done. 

Seats are tight, so lock in yours now.

*Past performance does not indicate future results.