Nasdaq - Market Rebound

It is interesting to see the Nasdaq decline by 2.61% in overnight futures. If this drop mainly relates to the sudden and dramatic imposition of tariffs on Colombia—tariffs that were then retracted hours later after Colombia capitulated to U.S. demands for repatriating its citizens “without limitation or delay”—the market’s reaction is indeed surprising.

As far as Trumpian strategy goes, this was a no-brainer. Colombia is not a significant trading partner of the United States, and the U.S. holds all the power in this scenario. It was never in doubt that Trump would impose reactive tariffs on a weak trading partner with no warning, as part of a diplomatic spat.

There may be concern in the markets that Trump could impose tariffs on Canada, the EU (specifically Denmark), or any nation with which he has political disagreements. Personally, that is something I have believed all along.

It is also notable that the markets have not rebounded much on the news that these tariffs will not go ahead after all. Consequently, I do not expect a major rebound today, though I do think the market will recover in the coming weeks.

Day Trade Opportunity

Buy: 21195

Profit Take: 21500

Opportunity Value: 1.44%

Stop Loss: 21150