{"id":15635,"date":"2025-03-06T00:02:32","date_gmt":"2025-03-06T00:02:32","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/03\/06\/navigating-tariffs-master-the-charts-to-outsmart-market-volatility\/"},"modified":"2025-03-06T00:02:32","modified_gmt":"2025-03-06T00:02:32","slug":"navigating-tariffs-master-the-charts-to-outsmart-market-volatility","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/03\/06\/navigating-tariffs-master-the-charts-to-outsmart-market-volatility\/","title":{"rendered":"Navigating Tariffs: Master the Charts to Outsmart Market Volatility"},"content":{"rendered":"
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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<\/a> (SMA). The Nasdaq Composite<\/strong> ($COMPQ) fell below the average on Tuesday, but recovered on Wednesday and closed above it.<\/p>\n

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.<\/p>\n

The Mag 7 Breakdown<\/h2>\n

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

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.<\/span>Chart source: StockCharts.com. For educational purposes.<\/span><\/em><\/p>\n

Note that despite the downward trend, MAGS managed to bounce off its 200-day SMA. The relative strength index<\/a> (RSI) didn\u2019t 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\u2019s a very challenging market and I would monitor the MAGS chart daily. You wouldn\u2019t want to miss out on a strong upside move.<\/p>\n

Change is in the Air<\/h2>\n

President Trump\u2019s tariffs have stirred the pot and caused shifts in investor sentiment. International stocks are gaining momentum, something we haven\u2019t seen in a long time. The weekly chart below<\/a> summarizes the performance of US stocks against the rest of the world.<\/p>\n<\/p>\n

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.<\/span>Chart source: StockCharts.com. For educational purposes.<\/span><\/em><\/p>\n

It\u2019s 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<\/a>).<\/p>\n<\/p>\n

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.<\/span>Chart source: StockCharts.com. For educational purposes.<\/span><\/em><\/p>\n

The Bottom Line<\/h2>\n

Now\u2019s a good time to test your patience. It\u2019s not exactly the type of market you want to open long positions. It\u2019s more of a \u201cwait and see\u201d type of market. We\u2019ll get the February jobs report on Friday, but how much it\u2019ll 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.<\/p>\n<\/p>\n

Disclaimer:<\/em><\/strong> 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.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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 […]<\/p>\n","protected":false},"author":0,"featured_media":15636,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-15635","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=15635"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/15636"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=15635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=15635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=15635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}