Wall Street Ferret: Markets in Turmoil

Fresh news and strategies for traders. SPY Trader episode #1112.
Hey there, stock jockeys! It's your pal Finny Ferret here, ready to dive into the wild world of Wall Street. It's 6 am on Tuesday, April 22nd, 2025, Pacific time, and the markets are already buzzing like a caffeinated honeybee. Let's get to it!

So, what's the skinny? Well, things got a bit hairy yesterday. The S&P 500 took a 2.36% tumble, the Dow Jones Industrial Average dropped nearly 1,000 points – that's a 2.48% fall – and the Nasdaq slid 2.55%. Ouch! Apparently, this marks the worst start to a presidency in a century for the S&P 500 since President Trump's inauguration, down 14%. But hold your horses! Futures are rebounding this morning, with Dow futures jumping over 270 points. Maybe we're not all doomed just yet.

Globally, things are a mixed bag, with investors all jittery. Back stateside, every single sector in the S&P 500 ended in the red yesterday, with tech and consumer discretionary leading the charge downhill. Big names like Tesla, Nvidia, Amazon, Meta Platforms, Apple, and Microsoft all took a beating. Only energy and real estate showed a little promise last week.

Now, let's talk about the headlines. President Trump's been laying into Fed Chair Jerome Powell again, demanding those interest rate cuts pronto. This is making everyone nervous about the Fed's independence. Plus, trade tensions with China are back on, with new tariffs flying around. China is threatening retaliation against anyone who plays ball with the US on trade deals that hurt their interests. On top of that, everyone's glued to their screens watching corporate earnings. Tesla and Alphabet are up this week, so buckle up!

The IMF is also waving red flags, warning that these tariffs are a 'significant risk' to global growth. And get this: consumer sentiment has tanked, with inflation expectations soaring to levels we haven't seen since 1981! The dollar's weak, Treasury yields are up, and the US economy is heading for a slowdown in 2025.

Speaking of earnings, keep your eyes peeled for Tesla's report after the bell today. Alphabet's also on deck, but investors are worried about regulatory scrutiny and the ROI on their AI investments. Even KimberlyClark cut its profit outlook. Tough times, folks!

So, why all the drama? It's a perfect storm of political uncertainty thanks to Trump's trade policies and Fed bashing. Trade wars are expected to fuel inflation and slow down the economy. Plus, those macroeconomic concerns are making everyone uneasy. Tech stocks are facing headwinds, and there are concerns about demand and earnings.

Okay, Finny, what do we do? First off, take a deep breath and don't panic. Be cautious, diversify your investments across different sectors and asset classes to spread the risk. Consider bulking up on defensive sectors like healthcare and utilities. Also, precious metals are always a safe bet. Keep a close watch on those earnings reports to see how companies are holding up, and stay informed about what's happening in DC and around the world.

Given that the S&P 500 has broken below nearterm support, a technical bounce is possible if corporate earnings are strong and inflation concerns ease. Here are a couple of shortterm trading tips:

Sell/Short 1: If resistance at the price range of 5192.9 5207.9 is touched, but the resistance at 5192.9 cannot be broken, set the TP (Target Price) around 5175.2 and the SL (Stop Loss) around 5215.4, or up to your risk appetite.
Sell/Short 2: If the support can be broken at the price range of 5162.7 5177.7, set TP around 5155.0 and SL around 5200.4, or up to your risk appetite.

For those playing the long game:

If resistance can be broken at the price range of 5162.7 5177.7, TP may be set around 5210. 0 and SL around 5170.2, or up to the risk appetite.

How did the stock market complete its school assignments? By using bullish points.

Remember, this is just my take on things, and it's not financial advice. Always do your own research and talk to a qualified financial advisor before making any big moves. Stay safe out there, and happy trading!