“What I wouldn’t give for a big… mess of TACOS right now” - the market yesterday morning.
Well crisis averted, friends… because it seems Donnie Deals remembered his favorite negotiating strategy (read: TACO - Trump Always Chickens Out)... and the market immediately forgave him for everything.
(Source: Giphy)
After spending the last few days saber-rattling Europe over Greenland the new announcement on the books is that he’s reached a “framework of a future deal” with NATO Secretary General Mark Rutte. Translation: Pour one out for all the poor souls who had a bad case of paper hands on Tuesday.
(Source: CNBC)
Now if you’re wondering what the deal actually is… don’t worry, so is everyone else. Trump said it’s “a little bit complex” (lmao) but hinted it involves U.S. mineral rights and the Golden Dimmy Dome missile defense system. ‘Murica! Meaning, it’s plain as day that the market wasn’t pricing Greenland sovereignty… It was pricing Trump backing off. Whereas, the result has become one of the cleanest TACO reversals we’ve seen in a while. And to be fair, it makes sense.
Europe tariffs were never going to be “just Europe tariffs.” They would’ve been inflation pressure, margin pressure, retaliation, supply chain headaches, and a full-blown vibes recession. Which is why, the second he took them off the table, stocks ripped like they’d been held underwater for 48 hours. Meanwhile, the only Debbie Downer in the room was Germany’s finance minister who basically said to not get anyone's hopes up too soon. Spoiler: He’s seen this movie before and it ends with tariffs.
(Source: Giphy)
But alas, whether Germany’s finance boss is right or wrong… it doesn’t matter. Because right now, it’s risk-on, buy the dip, pop the champagne on Wall Street. Meaning, if you're trying to trade this tape, the new indicator isn’t RSI or MACD. It’s Trump’s mood and whether he’s feeling spicy on Truth Social. And for now, he just hit Ctrl + Alt + Delete on chaos. We’ll see what today brings us. Until next time, friends…
At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.
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