Dear Members,
Finally, Trump announced the tariffs, and he has gone aggressively against Asian countries; however, the Asian market has remained relatively calm so far. The European market just opened in the red around 1-2% lower. After Trump announced the Tariffs, the NASDAQ moved down by almost 4.5%. Currently, the NASDAQ is trading 3.5% lower, and the Dow Jones is down over 1,000 points. The Tariff news has been impacting the US market more so than any other market in the world. US investors have lost a substantial amount due to volatility, and many stocks have declined by more than 50% in value. Even large-cap and mega-cap stocks lost around 30% of their value.
The tariff will affect many US companies that import products from Asian countries. For example, Apple imports its phones from China, and the company is experiencing its worst time in the US market after hours, with shares trading more than 7% lower. Apple’s profitability will be hurt. Many stocks, such as NKE, W, TSLA, TSM, NVDA, and WMT, among others, are expected to be negatively impacted by the tariffs. I am neither for nor against Trump, but one thing is sure: if all these large companies start producing goods in the US, it will be a highly concerning sign for the global economy. Over the last year, I have been discussing automation and robotics, which will contribute to the reindustrialization of the US.
Today many members starting asking how low the market could fall in the coming time, and my view is not much more from here. We are recommending buying stocks today on opening as it is a mixed astro day, but we have to remember that we are in an uncertain Astro cycle which can last for the next 8 days, so it is getting clear that we are close to the end of the worst cycle in the US equities. As predicted trade in and out by taking trading positions on any sharp rise or fall. A negative period will only start in the market if the S&P closes below $5551, and the NASDAQ $19238 for more than 3 days.
The Dollar lost value, and most of the currencies are trading sharply higher today. The Dollar breached our most important Astro support level of 102.21, and I do not see the Dollar remaining below this level for more than 3 days, so today is a great time to short most of the currencies.
Precious metals, base metals, energy, grains, and softs are all trading lower. Avoid buying any of these commodities for the next two days.
Thirty year bond moved sharply higher, and we recommend staying long in the bond market, but one can book partial profit at 120-00.
Yesterdays buying recommendation in LABU did very well and many healthcare tech stocks, as well as banks will perform very well.
IMPORTANT NOTE:
- Today is the day not to be afraid. Buy some small, long positions in the Indexes, as well as bull ETFs, the USD, and grains.
- Please wait for a brief update, as I may send one daily due to the uncertainty.
Thanks & God Bless,
Mahendra Sharma