Gold, silver and their respective mining bigwigs, shorts in Nasdaq and tech index or big tech like Nvidia or Tesla, VIX, rare earth miners. What do we get? Yup, as the title suggested, a few good men (or women)! They are the winners in the latest tariff war, between Donald Trump and the rest of the world.
People might be tempted to lump Trump with US, since he's the current American President. US is made up of hundreds of millions of people. Too bad those who had voted did what they chose to do, the rest just suffered along... Is this the so-called famous liberation (yup, punt intended). Freedom of speech, freedom to choose or not choose, freedom to ruin US and freedom to send USD down the drain... That's freedom... Social, economical, mental.
Out of the list above, gold is on the tear...
In relative terms, since this price increment is normally associated with risky assets like Nasdaq based companies or risky punts like cryptocurrency rather than a normally stable asset such as gold and silver. Conversely, perspectively high growth tech companies like Tesla, Nvidia are in downward spirals.
Looking at TA of Tesla, it appears that the time might be right soon for another round of short on Tesla.
VIX is another interesting preposition. We could do another trade on it but this trade is more difficult to control as there's lots of heightened tension and relaxed recovery in an index downtrend. VIX could only be used in very short term trades. Not really recommended since this risk is a lot higher. See the volatility in the chart below. We need to pick the right day to trade. I have used $ProShares Ultra VIX Short-Term Futures ETF(UVXY)$
Finally, we have the rare earth trades... I have repeatedly bang my table on these trades. I hope some of you have boarded the bus... I mean, how could China not use that? It has a super long history of using rare earth minerals as a leverage for control and in trade disputes...
With Donald Trump and US, a lesson needed to be taught for them to be back on ground level. If US semiconductor, automobile and defence sectors ground to a halt, would Donald Trump still be able to do his victory lap?
I doubt so... Patience is the key to these trades. Day-to-day volatility is only expected. Set a target entry and cut loss price. Bargains will emerge. As said, patience is the key...
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