Midweek update and weekly levels
Tariff Pause
Hello traders,
Today we had a historic day in the markets.
The S&P 500 surged by 9.52%, closing at 5,456.90, achieving its most significant single-day gain since 2008. This marked the third-largest increase for the broad market index in post-World War II history. The Dow Jones Industrial Average rose by 2,962.86 points, a 7.87% advance, finishing at 40,608.45—its strongest percentage gain since March 2020. Meanwhile, the Nasdaq Composite soared 12.16% to settle at 17,124.97, recording its largest one-day increase since January 2001 and its second-best daily performance in history.
As we had guessed(its all guesses, no one can predict the President’s next move tbh)
Trump announded a tariff pause for 90 days.
We nailed the intra-day up-move today and our bullish bias since Sunday open has paid off handsomely.
So what’s next Algo?
By implementing a 90-day suspension of reciprocal tariffs while simultaneously imposing a substantial 125% tariff on Chinese goods, President Trump has strategically provided the markets with a temporary reprieve.
The 125% tariff on China appears to be a calculated move in a broader economic standoff. The ambition to reshore manufacturing to the United States depends heavily on two critical factors: American consumers’ willingness to pay a premium for domestically produced goods and the readiness of the U.S. workforce to take on demanding manufacturing roles. Both conditions present significant challenges, given that 54% of Americans read below a 6th-grade level and the 80% are employed in the service sector, where compensation notably exceeds that of typical manufacturing positions.
This publication thinks, the Tariff dance with China would continue until the summer and then eventually a deal would be struck.
US equities that do not rely on China as a market or as a supplier, would benefit from this situation. JPM 0.00%↑ , WFC 0.00%↑ , NEE 0.00%↑ , UNH 0.00%↑ are companies which have very little exposure to China and would not be impacted by the Tariffs. In MAG7, META 0.00%↑ and GOOG 0.00%↑ have the lowest China exposure.
AAPL 0.00%↑ had an excellent day today but they would bear the brunt of Chinese tariffs unless they get a special exemption from the Trump administration.
Moving on,
Updated Weekly Levels:
Subscribers are urged to use the tradingview indicator to plot the levels.