đ Weekly Wrap: Volatility, Tariffs, and Opportunity
Navigating a Brutal Sell-Off with Strategy and Precision
Hey everyone,
What a week. Markets took an absolute beating, and headlines were flying faster than most traders could react. This is where experience, preparation, and having the right strategy in place really pays off.
I know itâs easy to feel rattled in an environment like thisâindices plunging, volatility spiking, and a never-ending stream of negative news. But Iâll tell you the same thing I told my inner circle: this is when we go to work.
Despite the chaos, I had a profitable week. Not because I predicted every move, but because I adapted. I made adjustments, leaned into the high volatility, and used it to sell premium. Thereâs money to be made in markets like thisâyou just have to know how to navigate it.
Letâs break down what happened.
đĽ Market Breakdown
This week marked a dramatic downturn in U.S. equity markets as escalating trade tensions sparked fears of recession and stagflation.
đ° The Big Trigger: âLiberation Dayâ Tariffs
President Trumpâs surprise tariff announcement hit like a ton of bricks. The tariffs ranged from 10% to 54% depending on reciprocity, sending shockwaves through the global economy. China wasted no time retaliating with 34% tariffs of their own.
The fear? Stagflationâthat toxic combo of stagnant growth and inflationânow looms large.
đ Index Performance
𧨠Sector Fallout
Tech led the sell-off. $AAPL, $NVDA, and $META all dropped double digits.
Energy and financials also got slammed, down 15.0% and 11.4%, respectively.
Oil dropped to $62.02/bbl, down over 10%.
The 10-year yield fell to 3.99%, while the VIX spiked above 45, confirming what we already felt: fear is in control.
đ Daily Rundown
Monday
Early selling reversed by the close. Market shrugged off weekend tariff rumorsâfor now.
Chicago PMI rose to 47.6 vs 45.3 expected.
Tuesday
Choppy action. Manufacturing PMI dropped to 49.0, sparking fears of slowing growth + rising prices = stagflation.
ISM Manufacturing Index: 49.0% (vs 49.8% est)
Construction Spending beat at 0.7%
Wednesday
Markets rebounded on hope that tariffs might be less severe than feared. CNBC reported a universal 20% tariff was unlikely.
ADP Employment came in strong at 155K vs 120K est
Factory Orders beat at 0.6%
Thursday
The dam broke. Trump imposed 10% global tariffs, and higher rates on China, Japan, Vietnam, and more.
Dow -1,500 pts
Nasdaq -6%
S&P -4.8%
Initial Claims stayed low, but Continuing Claims hit highest since 2021.
Trade Deficit still near record territory.
Friday
China retaliated. Nasdaq officially entered a bear market (down 20%+ from its high).
Nasdaq -5.8%
S&P 500 -6.0%
Oil down another 7.5%
VIX explodes past 45
Nonfarm Payrolls blew past expectations at 228K, but prior months were revised lower.
đ My Take
The markets are rattled, volatility is through the roof, and uncertainty is highâbut that doesn't mean you can't win.
I had a profitable week not because I avoided the mess, but because I used it. When volatility spikes, option sellers get paidâand I took full advantage. I didnât panic. I adjusted positions, stayed disciplined, and kept my head in the game.
You can still make money in a market like this. You just need the right tools, the right mindset, and a strategy that thrives in turbulence. Thatâs exactly what I share in my daily plays.
đ Keep following along, and Iâll keep showing you how to navigate it all.
See you Monday, đŻ-EC
If you want daily updates, I post a morning market overview and an evening recap every day on Substack Notes and Xâjust follow me and turn on notifications so you donât miss a thing at: EdwardCoronaUSA
*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.
Great overview of this week
Well done Edward!