NASDAQ: Madness in the markets THANKS to Trump!! Watch out!!Investors are unwinding their risk positions in the face of the imminent escalation of the global trade war and are seeking refuge in the safest assets. The entry into force of the new US tariffs on Canada and Mexico of 25%, in addition to a doubling of China's taxes to 20%, has triggered falls in the stock markets.
The proposed tariffs represent the highest trade barriers in several decades, and their entry into force distorts supply chains and will increase the prices of capital goods, raw materials, industrial and consumer products, including food that crosses the border. Measures that will push inflation upwards.
---> How far can the price fall?
If we look at the chart above (DAILY timeframe), the price has touched a KEY zone where it could end the retracement phase if it respects it or, on the contrary, start a much deeper bearish phase.
Today it touched it and automatically rebounded, but we have to wait for it to consolidate and for the indicators to start marking a bullish TREND AND STRENGTH (Bull) in H4 and H1 timeframes. This Friday the NFP will be published and therefore it will be a key day in the markets.
If we look at the chart below (H1), the TREND is clearly bearish (Bear), and as long as we do not see a bullish TREND (Bull) in that chart, the end of the retracement cannot be considered finished.
--> What strategy can we follow?
If our PROFILE is AGGRESSIVE, we are in a very good area to enter long, but if our PROFILE is CONSERVATIVE, we should wait for the H1 or H4 timeframe chart to show an upward TREND and STRENGTH (Bull).
Conclusion:
Mr. TRUMP and his CRAZY way of attacking the WORLD, has BROKEN the markets and now we just need to see when he decides to back down and CALM the markets down again... because HE WILL DO IT!!! He is a MARKET MANIPULATOR and that is the problem (FOR EXAMPLE WHAT HE DID 2 DAYS AGO WITH THE CRYPTOCURRENCIES CARDANO, SOLANA AND RIPPLE). He uses his messages to manipulate everything and SOMEONE SHOULD STOP HIM... Warren Buffet might do it at any moment :-).
Greetings and good luck because we are in a difficult time to invest in a stable way.
