What Our Experts Are Doing in This Crash
New tariffs from Trump roil the market (again)… the case for a bullish bounce… a key bearish line-in-the-sand… our experts are buying… a critical perspective
This morning, President Trump ratcheted up the tariff war, ordering tariffs on Canadian steel and aluminum to be increased another 25%, taking the full duty to 50%.
The policy goes into effect tomorrow morning.
Here’s Trump on Truth Social explaining why:
Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.
In response, Ontario Premier Doug Ford threatened to shut off electricity to U.S. customers.
This is what trade wars look like.
Before this morning’s news, stocks appeared to be attempting to form a base. After 30 minutes of trading, the S&P 500 was flat, the Dow Jones Industrial Average was modestly lower, and the Nasdaq Composite was up about 0.70%.
But within minutes of Trump’s tariff announcement, all three major indexes fell into the red. As I write, the Nasdaq has clawed back to a small gain. Who knows where we’ll end the day?
Stepping back, let’s look squarely at this volatility.
What’s the potential for a bounce? How bad might it be if we keep falling? And how do our experts assess this pullback overall?
Let’s begin with the bull case.
Are we nearing technical exhaustion?
Let’s begin by looking at the S&P 500’s Relative Strength Index (RSI) indicator.
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