Major Market Setups Amid 104% Tariff Hike

Markets are navigating turbulent waters as a 104% tariff on Chinese goods goes into effect, casting uncertainty across nearly all sectors. With the release of FOMC minutes and inflation data, traders are eagerly watching for any signs of clarity and direction. Below are key trade setups for Walmart (WMT), Broadcom (AVGO), Apple (AAPL), AMD, and the leveraged TQQQ ETF based on my observations. These are not recommendations, so always manage risk and decide based on your own research.

Economic Catalysts: Tariffs and Fed Minutes Dominate

Major drivers for market volatility include:

1. FOMC Minutes: Traders will analyze insights regarding adjustments to interest rate policies amid tariff developments.

2. Inflation Data: Concerns over higher future inflation are putting added pressure on equities. A higher-than-expected reading could exacerbate the sell-off.

3. 104% China Tariffs: Effective overnight, this steep tariff heightens pressure on U.S. firms with significant China exposure. The ripple effects across supply chains and consumer costs are becoming evident.

1. Walmart ( $WMT ( ▲ 1.06% )  ): Downward Pressure Looms Below $82

Walmart continues to face selling pressure amid broader downward market trends, especially with tariffs impacting consumer demand.

Key Levels:

• Support: $80

• Resistance: $82

Trade Plan:

• Bullish Setup: Look for consolidation near $80, with potential bounces back to $81.50-$82.

• Bearish Setup: Short below $82 after a failed retest, targeting $80 or lower.

The lack of diversification in Walmart’s core business leaves it exposed as tariffs weigh on retail sentiment.

2. Broadcom ( $AVGO ( ▲ 2.74% )  ): Stock Buyback Sparks Interest at $156

Broadcom announced a $10 billion stock buyback plan, a bullish move. However, tariff uncertainties loom heavy, making positive news essential for upward momentum.

Key Levels:

• Support: $156

• Resistance: $160

Trade Plan:

• Bullish Setup: Long above $156 only with supporting positive tariff news, targeting $160-$162.

• Bearish Setup: Short below $156 on further downside momentum.

Avoid Broadcom longs unless there’s concrete progress in U.S.-China tariff discussions.

3. Apple ( $AAPL ( ▲ 0.42% )  ): Risky China Exposure – $170 Holds the Key

Apple’s significant reliance on China remains a major vulnerability during this tariff escalation.

Key Levels:

• Support: $170

• Resistance: $178

Trade Plan:

• Bullish Setup: Long above $178 only with clear buyer interest and bullish momentum.

• Bearish Setup: Short below $170, targeting $165-$168 zones.

Apple remains highly volatile, and tight risk management is crucial for any trades.

4. $AMD ( ▲ 3.52% )  : $78 Decides Short or Reversal Play

AMD has been trading below $78, its decision point, following broad semiconductor weakness. Intraday ranges create opportunities depending on direction.

Key Levels:

• Support: $76

• Resistance: $78

Trade Plan:

• Bullish Setup: Long above $78 to capture upside momentum, targeting $80.

• Bearish Setup: Short below $77-$76, with tight stops and targets near $75.

Technical patterns favor bears, but keep an eye on sudden news-driven shifts.

5. $QQQ ( ▲ 0.79% )  : Tech Sentiment Barometer at $35

The leveraged TQQQ ETF offers clear levels for intraday traders, reflecting overall market conditions.

Key Levels:

• Support: $35

• Resistance: $39

Trade Plan:

• Bullish Setup: Long above $35 with tight stops, targeting $37-$39 on reversion trades.

• Bearish Setup: Short below $35, riding downside momentum if weakness persists.

TQQQ remains a strong proxy for market sentiment, especially tied to tech stocks.

Final Thoughts

Markets are highly reactive to tariff developments and macro data this week. Key levels mentioned above provide actionable insight, but patience and discipline are essential. These setups rely on confirmation for better entries, reducing unnecessary risk in unpredictable markets.

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