The stock market futures are up before the open as the stock market shakes off this week’s Trump tariff wars. All three averages gapped down hard yesterday and then bounced back in the afternoon, with the Nasdaq leading the charge.
As I said Monday: the Trump tariffs are real, but they won’t kill the stock market now.
However, let me show you what has taken the biggest hit from them.
Take a look at the chart.
Soybeans have crashed into the Chinese announcement that they were slapping tariffs on them in response to Trump’s tariffs.
They look like they were actually dropping into this news a bit so some people paying attention saw it coming.
They fell more yesterday and then reversed so maybe they are going to try to start to bottom.
Here is the broad-based agriculture ETF DBA:
It also fell to make a new 52-week low this week.
Yesterday DBA did come off of its highs going into the close.
Is this a bottom?
Even if it is it will take time for agriculture commodities to base and they seasonally rally from December to July.
So this is going to be a brutal summer for American farmers.
My grandmother had a 100 acre farm growing corn and many small farmers got destroyed in the early 1980’s when interest rates soared over 20%.
Maybe Trump will give the soybean farmers a subsidy bailout.
GE is being removed from the DOW.
Canada just passed legislation legalizing recreational dope so now we will see if those stocks just sell on news profit taking or if the tick up for the next few weeks with the Nasdaq as they have been the top speculative sector of the year – after the momo baton got passed to them by Bitcoin stock promoters.
WEED.TO is the key one to watch for an answer.