Our Urgent Market Update Video reviews important real-time market developments and their impact on high-probability trading opportunities. Today, we explain Trump’s Liberation Day U-turn and discuss the consequences of such an act.
We start by going through the sequence of events starting with the April 2nd Liberation Day “reciprocal tariffs” announcements. We then discuss the misuse of the word “reciprocal” and show the initial and subsequent market responses. We then discuss the fake news event which occurred on Monday, 7th April where we saw a 400-point S&P 500 rally. Then we discuss a dumping of longer-term US treasuries which causes Bond Yields to rally violently. In our opinion, this is why Trump announced the removal of reciprocal tariffs and replaced it with a broad 10% baseline tariff for nearly every country in the world (excluding China which has seen tariffs increase to 145% currently).
This brings us nicely full circle in discussing the consequences of this whole approach from the Trump administration. Basically, the markets do not like it at all, with normal safe haven markets like US Government Bonds turning increasingly more risky as we write this paragraph. Is this a sign of things to come? If so, we will prepare for further US Indices weakness and weakness for USD against all major dollar pairs.
Trump’s Liberation Day U-Turn: What Are the Consequences? – Full Video Analysis