Navigating a Volatile Week

Fresh news and strategies for traders. SPY Trader episode #1074. Good morning, Wall Street! It's 6 am on Sunday, April 6th, 2025, and you're tuned into Spy Trader. I'm your host, Barry Bonds… Valuation Bonds, that is! Let's dive into what's shaping up to be a very interesting week in the markets. Buckle up, it could be a bumpy ride! The big story, still, is tariffs and trade. The market's been wobbly thanks to the ongoing trade war, and frankly, everyone's on edge waiting for news. This week, keep a close eye on any trade negotiation updates, because they will move the markets. Beyond trade, we've got a bunch of economic data dropping. We're talking Consumer Credit on Monday, Eurozone Retail Sales also on Monday, then the big ones: US CPI on Thursday and PPI on Friday. Oh, and don't forget the University of Michigan Consumer Sentiment Index, also on Friday. These numbers will give us a peek under the hood of the economy, and give clues if tariffs are having the impact the bears suggest. The Fed is still a major factor. We'll be digging through the FOMC minutes for any hints about interest rate plans and their overall economic outlook. The market's hanging on their every word! And, as if that wasn't enough, Q1 earnings season kicks off on Friday, with the big banks reporting. This will be our first real look at how companies are performing, so expect some volatility. It also is Google Cloud Next 2025 from Wednesday to Friday and the National Cyber Security Show 2025 from Tuesday to Thursday, but I'm not sure that we'll get a huge amount of information to move markets there. Okay, so what does this all mean? Well, recent market performance has been sluggish, with major indexes taking a hit. Tech, consumer discretionary, and communication services have been underperforming. Energy, consumer staples, and healthcare? They've been showing some relative strength. So, you know, expect more of the same potentially. Speaking of sectors, the auto industry is feeling the pinch from those tariffs, so keep an eye on those stocks. On the flip side, energy sector has been holding up relatively well. The bond market has also been gaining ground as investors look for safer places to park their cash. So, here's my take. Caution is the name of the game. We should anticipate continued volatility next week. If you're feeling nervous, consider tilting your portfolio towards those defensive sectors like consumer staples and healthcare. And remember, think longterm and stay diversified. As for specific recommendations, I'm liking energy and consumer staples here. With the tariffs, people will still need to buy essential goods, so those sectors should remain relatively stable. Bonds are also looking attractive as a safe haven. Consider taking some profits from tech and reallocating them to more defensive positions. Of course, always do your own research and talk to a financial advisor before making any big decisions. This is just one opinion in a very noisy market. And now, for a little chuckle to lighten the mood: Why are accountants great dancers? They have all the right figures. That's all for this edition of Spy Trader. Stay safe, stay informed, and happy trading!