Following up on my earlier post — Markets, Tariffs, and a Bit of Breathing Room — I’m happy to report that we’ve hit our target on XSD, banking a solid 3% win on the trade.
So, what’s next?
📰 Market Recap: Tariffs, Safe Havens, and Nvidia’s Move
Yesterday, markets reacted to Trump’s tariff announcements targeting several smaller economies. While these aren’t major players, the headlines were enough to spark a shift into safe havens like gold (XAU) and away from risk assetsincluding XSD, XLE, and SPUS.
Interestingly, the market appears to be shrugging off the news today. One headline-grabber: Nvidia’s market cap has surged to $4 trillion — showing continued bullish sentiment in tech despite macro uncertainty.
🏦 Fed Watch: Rate Cut Uncertainty
The Fed statement today revealed a clear split on when rate cuts will occur. The key issue? Inflation risks from new tariffs.
Despite June’s reported drop in inflation, the Fed is hesitant to move on cuts in July — choosing instead to watch how things develop later in the year.
This comes even as Trump is ramping up pressure for cuts, adding another layer of political tension to the Fed’s decision-making.
🎯 What We’re Watching Now
The main focus going forward is twofold:
- Tariff-related developments
- Signals on potential rate cuts
In this environment, I expect optimism to dominate the market — not because conditions are great, but because there’s simply no other big bearish catalyst in play right now.
📌 Trade Setup: Gold and XLE
🟡 Gold (XAU)
I’m eyeing a potential buy zone in the $3,200–$3,250 handle, but only if there’s a strong fundamental bias — like further escalation in tariffs or clearer signals of rate cuts.
🔋 XLE
While we wait for gold to hit our levels, there may be opportunities to capitalize on market optimism via XLE. I’m watching for good entry points there.
Stay tuned — I’ll post more detailed setups as these plays evolve.
Disclaimer:
This is not financial advice. the content shared here reflects my personal opinions and observations on current market events. Please consult a licensed financial advisor before making any investment decisions.
