📈 Market Insights

These insights are critical to understand.

Market Insights

We’ve talked ad nauseum about tariffs and their impact on the market. At this point, we are at the whim of President Trump’s tweets as to whether the market will be up 5% or down 5% on a given day.

This morning, let’s put that aside and run through some other information and data that can give us an edge in the market.

USD / Gold Relationship

What we’re seeing from the chart above is that the dollar is being sold aggressively, while gold is being purchased aggressively.

As investors unwind their positions in USD, they need somewhere to park their capital, and right now gold is the commodity that they’re using to do just that.

Watching the movement of the USD and GLD will be important this week as we look to gain a clearer understanding of what institutions are doing with their capital.

Consumer Sentiment

We received more consumer sentiment data last week, and the results were not pretty. We registered our lowest reading since June 2022 (and notably a lower reading that the Great Recession).

This may be a contrarian viewpoint, but I actually don’t view this as the end of the world.

If you were to buy the S&P 500 every time consumer sentiment dropped below the 60 level, how would your trades have worked out? You can simply look above to find your answer.

While consumer sentiment is important and we want it to strengthen, I don’t think this reading spells disaster for the market.

Conclusion

Now more than ever, you need to be following the latest news, as the market is swinging wildly on economic data and political news.

Watch my video below so that you are up to date on the latest information before you trade this week: