Trump's New Tariffs Just Changed Everything!
In a Nutshell
Markets are rallying on momentum despite negative catalysts like new 10% tariffs on dozens of countries and Middle East escalation. Micron surged over 10% on Bank of America hype and KOSPI strength, but the move is a momentum play, not a fundamental breakout. Caution advised at overbought levels ahead of major earnings from Tesla, Alphabet, and Intel—position sizing and intent (investing vs. trading) are critical.
These notes were generated by AI and may contain inaccuracies.
Markets are more bullish than they are bearish and are definitely safer when going long. An overbought reversal is currently forming and is personally very attractive. This is a high-risk trade as it involves shorting against the current overall market direction and sentiment. Beginners should not copy this approach.
The NASDAQ market is trading significantly higher today despite a lack of positive news. A Korean exchange activated a buy sidecar, halting programs buying for 5 minutes after KOSPI surged 5%. When South Korean markets were dropping and aggressively crashing overnight, they acted as a negative catalyst for the semiconductor space and the overall NASDAQ market.
Oil prices are surging to $85 a barrel after Iran says that it has struck an Amazon data center, which does not sound bullish. President Trump is preparing new round of tariffs up to 60 countries at the current 10% global level, which also does not sound bullish. Over a dozen countries face 10% tariffs.
South Korean markets are propping themselves up higher. The KOSPI has been a huge indicator for the semiconductor and chip space. When South Korean markets drop, semiconductor and memory chip stocks drop, and when they rally, semiconductor stocks rally accordingly.
Micron Technology is rising over 10% as Bank of America adds it to the list of best investment ideas. Bank of America has been adding more of that position to their long-term plays, which appears to be hype rather than substantive news.
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