More news about retaliatory actions is emerging, which will only escalate the current tariff war. The market became somewhat overly confident after Trump's remarks last night. We are now seeing a common pattern where when the stock market drops significantly, Trump says something bullish, leading to a short-term rebound in the market.
Ultimately, the only situation that can sustain a bottom in the stock market is an agreement between the United States and China, and perhaps the European Union as well. Aside from that, everything else is irrelevant.
I believe a solution will eventually be found, as it is unrealistic to expect such high tariffs to exist in the long term, as they will only harm the economies of both countries.
The question is how long it will take to reach a solution, and how much more will the market price in the tariff war. From a macro perspective, this tariff war will provide us with a good opportunity to enter long positions, but due to the short-term uncertainty in the market, trying to find a bottom in the contracts is not the right approach.