Well, here we go again — another attempt at a comeback after another brutal sell-off.
The Nasdaq is trying to claw its way back after Monday’s meltdown while the S&P 500 is bouncing around but still down a bit. Meanwhile, the Dow Jones (DJI) is struggling, dropping over 400 points, weighed down by a rough morning for Verizon (VZ).
This all follows Monday’s steep losses, where the Nasdaq plunged 4% — its worst single-day drop since 2022. The so-called “Magnificent Seven” stocks took a beating, dragging the whole market down.
But today, Tesla (TSLA) is catching a bounce after getting some public backing from President Donald Trump — something that could add another layer of volatility to the stock in the coming days.
Investors Are Getting Nervous
The mood on Wall Street is shifting fast, and it’s not looking great…
There’s a growing fear that we’re heading into a period of stagflation — where economic growth slows but inflation stays high. That’s a brutal combo for markets, and firms are already making deep cuts to economic forecasts in response.
What’s making things even messier is that the market’s whole narrative around economic growth is shifting. Just weeks ago, investors were betting on a soft landing and potential rate cuts.
Now? The fear is that inflation is sticking around longer than expected, forcing the Fed to stay more aggressive than the market was pricing in.
With key inflation reports dropping Wednesday and Thursday morning in the form of the latest Consumer and Producer Price indexes, expect more whipsaw action as traders react in real-time to every data point.
This market is all about quick rotations, fast reactions, and making sure you’re positioned ahead of the next big move.
A Stock to Watch: Amazon (AMZN)
Mag 7 member Amazon (AMZN) is a stock to keep on your radar this week, as it tends to be bullish in March.
Despite the current sell-off, this seasonal trend could be worth a look, especially if we see a bounce-back — which we undoubtedly will at some point.
Buying AMZN on March 11 and holding for 18 days has delivered an average return of 3.08% over the past several years. While past performance is no guarantee, it’s definitely worth considering as we move through March, which is one of the most bullish seasonal periods of the year.
If you want to learn more about how I trade seasonality, check this out!
Finally, with all this volatility, it’s crucial to watch sector rotations. While Tech (XLK) is trying to find footing, defensive plays like Utilities (XLU) and Consumer Staples (XLP) could become more attractive if recession fears take center stage.
And of course, keep an eye on the inflation data — because right now, that’s the biggest wildcard driving everything and should be a big catalyst in either direction starting before the open tomorrow.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. What If You Could Target Profits From Both Directions?
Every major market shift has a trigger…
And most people don’t see it coming until it’s too late.
CPI and PPI data drop this week — and they could be the spark that sends the market trending lower or bouncing higher.
Nate expects volatility after this data is released, and he already knows how he’ll target profits from it.
Right now, you can see exactly how completely free.
We can’t guarantee profits or prevent losses…
But when it comes to trading events like this one, time is of the essence.
So if you’d like to see how Nate is navigating the aftermath of the CPI and PPI data being released…
