Today on the desk we discussed the importance of creating a plan for if the White House walks back its pronouncement to raise tariffs on steel and aluminum.  After this announcement, the markets sold off hard and there were winners and losers.

One of the really fun things traders can do our desk is play with technology.  Two traders could be heard discussing building a basket of stocks and products to buy if the tariffs are walked back.  They thought about what had been hit hardest to add to their basket and how to build.

During our AM meeting we discussed this possibility as well the potential for follow thru to the downside.  We asked our traders to review what did well and what got hit hard yesterday for trading opportunities today.

During our 11AM Trader Development mentoring session, we again discussed what to buy and sell if the White House walked back raising tariffs.  Some ideas (not meant to be comprehensive): Buy F, BA, GM, SPY, CMI, CAT.  The idea is to review what has been hit the hardest and be ready to buy if a walk back occurs.  Some more ideas: Short X, VXX.

This is not a political statement, but a pattern recognition observation.  The White House has a history of walking back statements of late.  So this is something for which to prepare as a trader.

*no relevant positions