Weekly Wrap - 7th Mar - US stocks have a very bad week. Gold + Silver show strength

Too much tariff indecision (and poor economic data) fuelled a move to the downside.

Summary of the markets this week

• US Indices = DOWN

• FTSE = DOWN

• DAX = UP

• Metals = UP

• Nat Gas = UP

• Brent Crude = DOWN

DualEdge Invest

sums it up with this note.

One day tariffs are on. The next day they are delayed. Then they are on again. Then they are delayed again. It’s like a tariff light switch at the moment. This indecision is not good for the market and not good for investors. This is likely the main reason that the US Indices have turned south.

I’m on record saying that this is probably just a usual pullback to clear some froth from the markets. Once cleared then onwards and upwards will likely be the case. The house of cards should be able to stand for a little longer. To add a baseball analogy, it seems as though we are at the bottom of the 8th and can play this game for a little longer (imho).

NB - Not financial advice!!

If (and it is a big IF) Trump 2.0 tariffs follow a similar pattern to Trump 1.0 tariffs then the DXY should rebound and thus the US Indices should rebound too! Easier said than done but we shall see.

This chart can from this Zerohedge article.

DOW JONES

All of the charts for the US Indices are relatively ugly. The Dow Jones finished the week down 998 points (-2.28%). It would have been worse if not for a rebound on Friday. The RSI is showing an oversold position too.

NASDAQ

The NASDAQ (Or the QQQ’s as you may have read elsewhere) finished the week down 681 points (-3.27%). Like the Dow Jones, it also showed signs of a potential rebound on Friday and the RSI is showing oversold conditions.

S & P 500

The S & P 500 finished the week down 181 points (-3.05%) and, like the NASDAQ and Dow Jones, also rebounded on Friday. The RSI of 31.9 also shows oversold conditions on the Daily chart.

Summary

The bottom could be in (as per the daily charts above) but there could also be a little bit more pain next week before what I expect will be a stronger rebound and a move to new ATH’s

Not all bad news though as Gold and Silver have shown resilience this week…