This Major Signal Points to a Rally Coming

Shah Gilani|May 2, 2025

Markets don’t ring a bell at the bottom.

But if they did, you might’ve heard it when the S&P 500 bounced out of bear market territory and launched higher like one of Elon’s rockets.

Let’s call it what it is: a classic event-driven selloff.

We’ve been here before.

When the narrative is tariffs – especially Trump tariffs – markets tumble on threats and tremors, then rally on walk-backs, exceptions, pauses, and increasing wiggle room.

What we’ve seen over the last two months is a textbook setup of a policy-induced market scare followed by a presidential pivot…

And in my book, that’s tradable.

Tariffs, Tremors, and the Trump Trigger

The Trump administration’s tariff onslaught has acted like a tripwire under the markets.

Every time the president took a hard line on trade, especially when aimed at major economic rivals like China or across-the-board threats to global partners, markets freaked out.

Stocks dropped…

Bond yields spiked…

Spreads widened…

The whole yield curve quivered.

But there’s a pattern you can trade, because it’s written in Trump’s Master Plan. Every single time the major averages fall into correction – or worse, into bear market territory – the White House walks it back.

First, we got harsh tariffs and tough tweets. Then, exclusions. Exemptions. “Temporary waivers.” Then, a 90-day pause to let cooler heads prevail.

And each time? The markets breathed a sigh of relief, stocks bounced and then shot up.

That’s no accident. That’s tactical. That’s the president’s plan. As crazy as that sounds, it’s true.

Trump is playing the market like a power trader – testing reactions, pushing boundaries, then pulling back just enough to keep the narrative under his control.

It’s no secret that the president watches the stock market like a hawk.

And as I said on Varney & Co. last week, he’s got a plan – because in Trump’s world, market strength is political strength.

He doesn’t want a bear market this early in his reelection campaign. He wants a booming stock market that he can claim credit for – especially heading into the meat of the 2025 legislative calendar.

Why the Bottom Might Be In

Here’s where things get interesting.

We’re now seeing consistent behavior from the administration that signals they’re done letting the market nosedive.

The 90-day delay on the April tariff barrage was the first major clue. Now, the rumor mill is humming with whispers of new trade deals, not new tariffs.

Japan. South Korea. Even India. Those aren’t just symbolic relationships – they’re economic juggernauts in their own right. And if Trump cuts even one favorable deal with any of them, the market will take it as a template for global de-escalation.

You want a market bottom? That’s how you get one.

Even if Trump stays tough on China, a deal with anyone big enough would send a clear signal to markets: the White House isn’t pursuing an all-out trade war anymore – it’s pursuing deals.

And once the narrative shifts from confrontation to cooperation, especially with the president already teasing a new round of middle-class tax cuts, the bear case loses its claws.

The Shift to Tax Cuts

Let’s not forget how markets work: they don’t need perfection – they just need less uncertainty.

Tariffs were the uncertainty. Deals resolve it.

Now, Trump’s trying to pivot the market conversation away from tariffs and toward tax cuts.

That’s a bullish shift if I’ve ever seen one. Not only does it imply less confrontation abroad, it signals an effort to juice consumption and rally voter confidence at home.

In 2017, Trump’s first tax cuts sent corporate earnings soaring and triggered one of history’s strongest stock market years.

He knows that. He’s banking on history repeating – just in time for a 2026 midterm setup.

That’s why I’m telling you: it will change everything if a trade deal breaks through, especially with a strategic ally like Japan or South Korea or a rising power like India.

The tariff pain trade will be over. The narrative will flip. And the bottom will be in.

I’ve seen policy shocks before. I’ve traded them. And I’ve made money from them.

When this latest round of Trump tariff chaos triggered a market-wide selloff, I told my newsletter subscribers exactly what to do: buy great companies that just went on sale.

We loaded up – cautiously, selectively, but deliberately – on names like Apple, Amazon, Microsoft, Meta, Google, and Nvidia. Household names. Balance sheet beasts. Earnings juggernauts.

And guess what? They’re all up.

Not because tariffs are gone, but because the worst of them probably is. Because Trump’s Phase II is in operation, the market will rise again.

The Way to Play It Now

Markets just look like they want to go up. If you know how to listen to them, that’s what they’re telling us. That’s the truth right now.

There’s a ton of dry powder on the sidelines, waiting for clarity. And if a trade deal materializes – even a partial one – this market won’t just pop. It’ll rip.

So, here’s the play…

• Stay long what you own
• Add on any weakness
• Keep cash ready.

The bottom sure looks like it’s in.

If Trump shifts fully into dealmaker mode – cutting tariffs, signing trade deals, pushing tax relief – then this isn’t just a bounce. It’s the beginning of a new leg higher.

This Market Rebound Is Just Getting Started

As I said at the beginning, markets don’t ring a bell at the bottom. But they do give signals – and all signs point to a tradable opportunity forming right now. With tariffs triggering short-term volatility followed by presidential pivots, we’re witnessing what could be the setup for a significant market rally.

But there’s much more to this story than meets the eye…

I’ve spent decades on Wall Street analyzing market patterns and policy impacts. Now I’ve uncovered what might be the most brilliant economic chess move in presidential history – and it’s all laid out in my urgent new report: “Trump’s Trade War Master Plan.”

Inside, I reveal the four-step strategy already unfolding, why May 6th could be a critical turning point, and three specific stocks trading at bargain prices that could deliver extraordinary returns as this plan unfolds.

Don’t wait for the headlines to catch up. The smartest money moves first. Click here to be among them now.