TI 04/02/25

Chart of the Day 📈 4/2/25: It's Tariff Day! Time to "Buy the News?"

Mike Larson | Editor-in-Chief

“Buy the rumor, sell the news.” It’s an old Wall Street saying you’ve probably heard a million times.

But now that it’s Tariff Day, should you do the OPPOSITE? Is it time to BUY the news?

Think about it: We’ve been selling the rumor of higher tariffs and a worsening trade war for weeks. Ever since the markets peaked in February, the averages got smacked hard enough to push the S&P 500 into an “official” correction – down 10% from its peak. Many of the highest-flying Artificial Intelligence (AI) and related stocks fared even worse. Even the Roundhill Magnificent Seven ETF (MAGS) is now down around 14% on the year.

But look at the MoneyShow Chart of the Day here. It shows the SPDR S&P 500 ETF (SPY). We had a high-volume selloff in February and March. Then we had a re-test on Monday…and it was successful (for now at least). Specifically, we tagged the previous low, then mounted a high-volume reversal to the upside -- and recorded a slightly higher low in RSI.

SPY: Is This the START of a Bottoming Process?

I recently wrote about what a bottoming process MIGHT look like. And you know what? The action over the last few days looks kind of like that.

It’s only a START. Maybe President Trump’s tariff plans will be so aggressive, the short-term technical action won’t matter and we’ll just give up the ghost. But maybe...just maybe…the best play is to BUY the news here!

Tariff Day Roundtable: What’s Next for Stocks, Gold, Interest Rates - and YOUR Money

With the “big reveal” of President Trump’s tariff plan scheduled for later today, what’s an investor to do? Where are stocks, gold, interest rates, and other assets going next — and what does this mega-policy move mean for YOUR MONEY? I convened an expert panel several days ago to cover the looming event and its potential fallout. Check out what Tom Hayes, Jim Bianco, and Kenny Polcari had to say in that MoneyShow MoneyMasters Podcast episode HERE.

• Gold: Support Levels to Watch in this Tariff-Driven Trading Week
  👉️ TICKER: GLD

  Gold started the new quarter hitting fresh record highs, following a massive first quarter during which it rallied 19% and broke lots of milestones, including surpassing the $3,000 mark. Later in the week, there is a chance for gold to at least pause for a breather – especially if President Trump opts for a softer stance on tariffs, opines Fawad Razaqzada, technical analyst at Trading Candles.

• SPY: What Sector, Sentiment, and High/Low Analysis Shows

  👉️ TICKERS: DIA, XLC, XLE, XLK, XLP, SPY

  Daily volatility continued in the most recent week. Only four of the eleven S&P SPDR sectors were higher last week. Meanwhile, the major averages and stocks remain below key moving averages, with overhead resistance above, advises Bonnie Gortler, CEO of Bonniegortler.com.