April 8, 2025

Markets:

Another double booked yesterday, and today we’re seeing the perfect price action to press this market even further.

Treasury Secretary Scott Bessent told CNBC on Tuesday that China’s escalation was a “big mistake,” claiming the country was “playing with a pair of twos.” He also revealed that about 70 countries have approached the U.S. regarding tariff negotiations, suggesting the Trump administration is open to striking deals.

“If they come to the table with solid proposals, I think we can end up with some good deals,” Bessent said. “And part of the calculus of that may be that some portion of the tariffs stay on.”

On Monday, the S&P 500 briefly entered bear market territory, falling more than 20% from its highs before bouncing slightly. It still ended the session lower. Last week alone, the benchmark lost 10%—its worst two-day drop since the 2020 COVID outbreak—as markets reacted to Trump’s shockingly aggressive tariffs, raising fears of a recession.

Despite further troubling trade headlines overnight, markets bounced Tuesday. China stated it would “fight to the end” following Trump’s threat of an additional 50% tariff if China proceeds with its 34% retaliation.

Portfolio:

We head into todays session holding one setup in AAPU.  Setup count is light, and we’re looking to add. Premarket activity is interesting—initial read leans toward initiating a few short-term shorts.

But… could this be the moment?

As we mentioned last week, tech could start to look cheap. The AI narrative hasn’t changed, and earnings season kicks off in under 10 days. Could the tariff fears already be priced in? Watch names like AAPL, AMZN, NVDA, AVGO, MSFT, and others—they might be ready to rebound.

Another notable development: we’re ripping off VWAP this morning. If we hold this and build, things could get very interesting on the upside. All scenarios are in play. We’re ready to attack in either direction.

Is the coast clear? Are tariff concerns fading? Trump is expected to speak at 3 PM ET today, and tariffs will likely be front and center. That press conference is today’s wild card.

Key Levels to Watch:

SPY: Support at 508/505 — want to see these levels hold.

QQQ: A close above 422 would lean more bullish.

Pretty straightforward. Hope you see the absolute monster of a market this could turn into if the upside builds. But ready to strike on both sides—just like we’ve been doing since SPY broke our key line.  Be ready today.