ALERT: TRUMP'S TARIFF WAR IS BACK AND IT'S NOT LOOKING GOOD!
In a Nutshell
Markets are consolidating amid tariff escalation with Canada and China, plus Iran-Pakistan talks on the Strait of Hormuz, making cash the safest position until clear trends emerge. Nvidia earnings tomorrow and Bitcoin's speculative nature are key watchpoints, with MicroStrategy shorts targeted at $82K-$85K levels. Dick's Sporting Goods dropped 27% post-earnings miss and is now trading at 17x P/E with 27% analyst upside, while Micron sits near breakeven.
These notes were generated by AI and may contain inaccuracies.
Pakistan and Iran held talks in Tehran regarding reopening the Strait of Hormuz. Iran wants the US to return to the Islamabad agreement and specifically wants clause five implemented, which calls for bilateral understanding between Iran and Oman on managing the Strait. Pakistan is expected to relay these conditions to Washington. Markets initially celebrated the conversation but began selling off as escalation continued. Oil prices are dropping, which may help bring inflation back down, though the ongoing deal-no-deal situation makes sustained price stability unlikely if threats of attack continue.
Additional tariffs on China increased by 7.5%. Canada responded to current tariffs with 50% tariffs on steel (up from 25%) and tariffs of 15%, 25%, and 50% on 700 products effective September 8th. This marks the beginning of a new tariff war with Canada.
Markets gapped up overnight, pulled back after open, and are currently consolidating. The recommendation during uncertain, choppy market conditions is to stay cash rather than take aggressive positions. When trends are clearly in favor for either long or short positions, trading becomes significantly easier due to consistent directional momentum. Current market lacks this clear direction.
A small open position exists on Micron, currently teeter-tottering around break-even with a gain of approximately $300-400. The position remains flexible for taking advantage of potential downside opportunities without forcing trades during uncertain conditions.
Dick's Sporting Goods (DKS) reported earnings on August 25th, 2026, missing earnings per share by 6.6% and missing overall revenue targets. The stock dropped 27.64% following the report. The company cut its forecast due to weaker sneaker demand. The stock trades at 17x P/E ratio with analysts indicating 27% upside potential from fair value. The stock fell from highs of $230 per share to current levels of $130 per share. The position is considered oversold on larger timeframes, though it remains unclear whether this represents the beginning of further decline or a buying opportunity.
InvestingPro software provides access to LTM financial models and fair value analysis. The software is available for less than $9 per month during the current August sale.
Nvidia is scheduled to report earnings tomorrow. The recommendation is to avoid aggressive trades today that could be regretted after tomorrow's earnings report, particularly when focusing on quality trades. Setting alerts and stepping away may be preferable during high-impact events.
Bitcoin remains under close observation despite no direct Bitcoin trading. MicroStrategy (MSTR) is shorted when Bitcoin begins to sell off. Current analysis indicates 27% downside potential for MSTR based on the difference between current highs and previous lows. The strategy requires waiting for confirmation rather than entering shorts early. No current open position exists on MSTR, with readiness to act once Bitcoin shows clear selling pressure.
Bitcoin is viewed as a speculative asset with no underlying value, primarily used in black market activities rather than as legitimate currency or investment. The asset experiences recurring crashes despite passionate advocacy. The approach involves allowing Bitcoin to reach higher levels (potentially $82,000-$85,000) before taking action, avoiding early short entries.
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