Stocks are up even bigger after Tuesday’s big rally on the heels of three major catalysts…
One, President Donald Trump says he won’t fire Fed Chair Jerome Powell (because he can’t), which stabilizes the market. Two, Trump also walked back some tariffs on China, and three, Tesla CEO Elon Musk said his time spent with DOGE will come down a lot beginning next month.
So even after the company reported horrible earnings numbers, TSLA is still up over 7% even after reporting that its net income is down a staggering 70%. This is a Fortune 500 company that couldn’t make even $400 million this past quarter.
This tells us that sentiment and political news are almost the only things driving the market right now — not earnings or anything else.
The three things mentioned above — all political headlines — are behind this morning’s big rally that has the Dow up about 700 points, the S&P 500 up 2.4% and the Nasdaq up 2.9% about an hour ahead of the open.
However, the U.S. dollar is still down and at the eight-day exponential moving average. We need to see the dollar rally above par at the $100 level, and I’d love to see a big rally.
The bond market (TLT) is up quite a bit, over 2 basis points, and it’s reacting to stability in the U.S. markets and China…
Which is also rallying on today’s big headlines and I like what I’m seeing here…
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. If History Repeats Itself, the Market Could Close the Year in the Red!
You see, when the market’s lost over 15% of its value, it’s closed in the red for the year 81% of the time…
And now, we could be on the verge of something even bigger. But there’s a way to sidestep the upcoming chaos…
