Daily Commentary: October 15, 2025

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Trump Firm On China Tariffs

Posted by Pete Stolcers on October 15
www.oneoption.com

Treasury Secretary Bessant said that they are not concerned that their tariffs might spark a market sell-off.

PRE-OPEN MARKET COMMENTS WEDNESDAY – The market decline on Friday has not deterred buyers. The SPY has been able to recover most of the losses and it is poised to open above AVWAPQ this morning. Global markets were up nicely and overnight bank earnings reactions have been favorable.

Bank earnings have been good and XLF bounced off of the 100-day MA this week and the ETF is poised to clear the 50-day MA today. That will provide a solid backdrop for the market.

Six months ago a 100% tariff on China sent shock waves through the market. This time around a one day drop is all we’ve seen. Perhaps TACO is in play, but it really doesn’t matter what’s driving the action, buyers are in control. Bessant acknowledged that the market might drop when this is instituted and he said that it doesn’t change things.

Republicans are not budging on the continuing resolution (CR) either. They feel that they have presented a clean bill and that Democrats have a losing hand. The House is in recess and they will return next week. This has little impact because it is the Senate that can’t pass the CR. If they get the votes, the House will return to vote. The longer this lingers, the more nervous investors will get.

Empire Manufacturing came in better than expected and we don’t have any economic data to lean into.

This dip has been brief and shallow and the market has recaptured half of the long red candle from Friday. Given the backdrop, I don’t feel the need to chase this gap up. Let’s wait for confirmation that the move is going to hold. While we do that, we might get a dip that provides us with a better entry point.

Support is at AVWAPQ and resistance is at the open from Friday.

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