The dip buyers are hesitant to jump in this morning as the steel and aluminum tariff news has created great uncertainty. There just isn't any way to know yet how this will develop. Not only are domestic users of metals impacted but the potential for foreign retaliation is high.
The market was disappointed this morning that President Trump doesn't seem to be backing down but it would be very surprising if he did so in that manner. Anyone that has followed Trump knows that he will never apologize or admit to mistakes. He will simply change his position and move ahead as if that was always the plan. I expect to see that process begin over the weekend.
I am using the softness this morning to add to a few things like HTG Molecular (HTGM) , Cara Therapeutics (CARA) and Health Insurance Innovations (HIIQ) but I'm doing so very incrementally. Twitter (TWTR) is holding up well in this action and also I added a little to my SPDR Gold Trust (GLD) position yesterday.
Overall technical conditions are oversold but the lack of any strong bounce action shows there is a high level of nervousness and uncertainty. I would not be surprised if we see more downside but I think we will probably see some shifting in the tariff policy over the weekend that will give the market some relief.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
It's hard to call a stock that doubled over the past six months oversold, but that is indeed what we see.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
