Market review from UTEX — week 15

All last week the market was in a sell-off: SPY and Nasdaq lost 9% each. For the year, the indices are down 2% and 4% respectively.

New tariffs announced by Donald Trump on April 2 affected goods from 185 countries. Almost all industries fell. The banking, technology and oil sectors sagged the most. Oil prices fell to a four-year low. 

JPMorgan admits the start of recession this year. Billionaire investor Bill Ackman said that if Trump doesn't suspend his tariff innovations, the US could be in an “economic nuclear winter.”

Bitcoin has been better than the market all week, holding above $80,000, but broke through that mark on Sunday night. BTC is now trading at $76,700.

EU trade ministers will discuss their response today, April 7, tensions are rising. China will impose a 34% tariff on imports from the US as early as Thursday. 

Friday kicks off a new earnings season — several major banks will report. The market is down, many companies will revise their annual forecasts. 

There is enough “air” in stocks, we expect very high volatility. It is very good for day-trading. It will be more difficult for mid-term traders — the market is unpredictable, and it is absolutely unclear where the fall will stop.

Top 5 ideas for trading this week

🟡 Delta Air Lines (DAL). Report on April 9 before the open. The airline's stock is down 32% for the month. If there's a decent report, it could rebound, especially amid falling oil prices.  

🔴 JPMorgan (JPM), Wells Fargo (WFC), BlackRock (BLK), The Bank Of New York (BK). Reports April 11 before the open. There's no telling where the market will be by Friday, but with the general turbulence, these reports will get special attention.

🔴 ETFs that could move strongly. TQQQ and SQQQ are triple ETFs on the Nasdaq 100. When the Nasdaq falls, TQQQ will fall three times faster, while SQQQ will conversely rise three times faster. SOXL and SOXS are triple ETFs on the semiconductor sector. They work the same way.

🔴 The VXX “fear index” is up +45% for the week. This seems to be one of the most volatile instruments in the market in the near term.

🔴 Coinbase (COIN), MSTR Strategy (MSTR), MARA Holdings (MARA). Last week, bitcoin held off from a major drop. If selloffs begin in BTC, these companies could fall faster than the market. 

 Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

⚠️ Advice to day traders. Fellow traders, we strongly advise you not to sit out any losses now — the moves are very strong. One unsuccessful trade without stops can cost you a lot of money. Do not “bite the bullet” if something does not go according to the plan, and do not pour the entire deposit. 

⚠️ Advice to swing traders. Do not hurry to catch the bottom, do not overload the volume in positions. The market moves strongly on the post- and pre-market, stocks can open with big gaps in any direction.

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