Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Stocks

Navigating Tariffs: Master the Charts to Outsmart Market Volatility

by Invest Daily Pro
March 6, 2025
in Stocks
0
Navigating Tariffs: Master the Charts to Outsmart Market Volatility
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Tariffs have thrown the stock market into dizzying moves, moving up and/or down based on whatever news headlines circulate. The broader stock market indexes have all declined, although they are holding on to their 200-day simple moving average (SMA). The Nasdaq Composite ($COMPQ) fell below the average on Tuesday, but recovered on Wednesday and closed above it.

Looking at weekly performance, Real Estate, Health Care, and Consumer Staples are the top three S&P sector performers. These sectors fall under the defensive category, which suggests that investor uncertainty is still in the air. Gold and silver prices are rising, an indication of risk-off sentiment.

The Mag 7 Breakdown

Investors were flocking to the Mag 7 stocks not too long ago, but this is no longer the case. The daily chart of the Roundhill Big Tech ETF (MAGS), a basket of the Mag 7 stocks, illustrates that this group of stocks has technically broken down.

FIGURE 1. DAILY CHART OF ROUNDHILL BIG TECH ETF (MAGS). The ETF which holds all the Mag 7 stocks has broken down. However, it bounced off its 200-day simple moving average, and the relative strength index stayed above the 30 level.Chart source: StockCharts.com. For educational purposes.

Note that despite the downward trend, MAGS managed to bounce off its 200-day SMA. The relative strength index (RSI) didn’t dip below 30. Does this mean the Mag 7 could bounce back? Semiconductor stocks were up two days in a row, which may have helped MAGS stay afloat. But semiconductors are vulnerable to tariffs, so why are these stocks showing green shoots? It’s a very challenging market and I would monitor the MAGS chart daily. You wouldn’t want to miss out on a strong upside move.

Change is in the Air

President Trump’s tariffs have stirred the pot and caused shifts in investor sentiment. International stocks are gaining momentum, something we haven’t seen in a long time. The weekly chart below summarizes the performance of US stocks against the rest of the world.

FIGURE 2. US VS. THE REST OF THE WORLD. The Vanguard Total Stock Market ETF which consists of large growth US stocks is declining in performance against international stocks.Chart source: StockCharts.com. For educational purposes.

It’s also worth noting the performance of the US dollar. The US dollar plunged and is now trading below its 200-day SMA. The Canadian dollar and Mexican peso are showing signs of gaining strength against the US dollar (see chart below).

FIGURE 3. THE WEAKENING US DOLLAR. After tariffs on imports from Canada and Mexico were implemented, the US dollar started to weaken against the Canadian dollar and Mexican peso.Chart source: StockCharts.com. For educational purposes.

The Bottom Line

Now’s a good time to test your patience. It’s not exactly the type of market you want to open long positions. It’s more of a “wait and see” type of market. We’ll get the February jobs report on Friday, but how much it’ll impact the market is unclear. With investors focused on tariffs, the jobs report may be brushed off, unless it comes in vastly different than the forecast. Expect more volatility in the weeks ahead.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

ShareTweetPin

Related Posts

Run Your Stock Portfolio Like a Pro Sports Team
Stocks

Run Your Stock Portfolio Like a Pro Sports Team

May 31, 2025
Leadership Rotation Could Confirm Corrective Phase
Stocks

Leadership Rotation Could Confirm Corrective Phase

May 31, 2025
Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?
Stocks

Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

May 30, 2025
Nuclear Power Trio: OKLO, SMR, and CCJ in Focus
Stocks

Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

May 30, 2025
Larry Williams on the Fed, Interest Rates & Markets! What’s Next?
Stocks

Larry Williams on the Fed, Interest Rates & Markets! What’s Next?

May 29, 2025
Top Sectors to Watch + The 18 SMA Setup Every Trader Should Know
Stocks

Top Sectors to Watch + The 18 SMA Setup Every Trader Should Know

May 29, 2025
Next Post
Goldman Sachs Kostin Warns of a Potential S&P 500 Correction

Goldman Sachs Kostin Warns of a Potential S&P 500 Correction

Recommended

“MAKOR RESOURCES and AUYAN Secure INNOVATE UK Funding for Sustainable Mining Using Space Technology”

“MAKOR RESOURCES and AUYAN Secure INNOVATE UK Funding for Sustainable Mining Using Space Technology”

December 9, 2024
Mapua beats JRU, shares second place in NCAA 100

Mapua beats JRU, shares second place in NCAA 100

September 29, 2024
Gov’t action vs leptospirosis urged

Gov’t action vs leptospirosis urged

August 12, 2024
Raymond Wolk: Paving the way for Business

Raymond Wolk: Paving the way for Business

November 28, 2024
About time to delete POGOs, internet gaming

About time to delete POGOs, internet gaming

August 15, 2024
25th November is White Ribbon Day: Join the #ItStartswithMen Movement to End Violence Against Women and Girls

25th November is White Ribbon Day: Join the #ItStartswithMen Movement to End Violence Against Women and Girls

November 19, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved