Tariff Trade Showdown: Finding opportunities amid Trump’s threats on China
1. Analysis of tariffs
I see Trump’s latest tariff statement as more of a bargaining chip than an actual escalation, especially since the U.S. still relies heavily on China for rare earth metals, around 70% of supply. These materials are essential for chips, AI, and even military applications, so both countries know how much leverage is at stake. The market today is reacting differently compared to April 2025 because investors have accepted that this trade issue is no longer just about trade, it is about tech dominance. I think we will see short-term volatility, but long-term, the U.S. and China will likely reach a practical compromise since both economies depend on each other.
2. Strategy & Goal
My plan is to take advantage of short-term fear in the market by buying quality companies with strong fundamentals that dipped after Trump’s announcement. Instead of chasing quick gains, I am aiming for about a 10% upside once sentiment stabilizes. For now, I am keeping an eye on the tech and fintech sectors as they often get hit first during tariff news but tend to recover the fastest once things calm down. The key is not to overreact but to stay disciplined with entry points and position sizing.
3. P&L Proof
Here is my recent purchase of Futu Holdings Ltd (FUTU) made on Friday after Trump’s statement.
I see Trump’s latest tariff statement as more of a bargaining chip than an actual escalation, especially since the U.S. still relies heavily on China for rare earth metals, around 70% of supply. These materials are essential for chips, AI, and even military applications, so both countries know how much leverage is at stake. The market today is reacting differently compared to April 2025 because investors have accepted that this trade issue is no longer just about trade, it is about tech dominance. I think we will see short-term volatility, but long-term, the U.S. and China will likely reach a practical compromise since both economies depend on each other.
2. Strategy & Goal
My plan is to take advantage of short-term fear in the market by buying quality companies with strong fundamentals that dipped after Trump’s announcement. Instead of chasing quick gains, I am aiming for about a 10% upside once sentiment stabilizes. For now, I am keeping an eye on the tech and fintech sectors as they often get hit first during tariff news but tend to recover the fastest once things calm down. The key is not to overreact but to stay disciplined with entry points and position sizing.
3. P&L Proof
Here is my recent purchase of Futu Holdings Ltd (FUTU) made on Friday after Trump’s statement.
4. Key Learnings
Looking back, I might have gotten a bit too eager. FUTU closed around $154.6, so waiting a little longer could have given me a better entry near $155. It is a reminder that patience often pays off, especially when markets react emotionally to political headlines. My edge is that I follow both policy news and sector trends closely, but I can still improve on timing and letting the setup fully play out before entering.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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106292597 : Well written, Moomoo should promote you two levels.
104528497 : I second this. I'm expecting more downside next week let's buy more.
At some point both giants need do give and take to safeguard their economy. Let's see.