Good morning, traders,
A war is brewing at the highest levels of economic power, and it’s not just some policy disagreement behind closed doors.
On Friday, President Trump fired Erika McEntarfer, statistics chief at the Bureau of Labor Statistics, because she had the nerve to release a weaker-than-expected jobs report. (A lot weaker than expected.)
It showed not only a soft print for July but deep downward revisions for the prior two months.
Then — right on cue — the conspiracy theories started flying. Trump and his team accused political opponents of rigging the data.
Meanwhile, Adriana Kugler abruptly resigned from her seat on the Fed’s Board of Governors, even though her term wasn’t up until January.
That clears the way for Trump to slide one of his loyalists into a powerful Fed position — and potentially gets him closer to booting Fed Chair Jerome Powell, whose term is supposed to end in May.
This isn’t some sideshow, no matter how much it might resemble one at times. It’s a direct shot at the institutions that control interest rates and the data that shape the market.
Now pair that with what we just saw last week — a market regime shift that caught a lot of traders flat-footed — and it all becomes a lot to navigate.
Here’s how to do it the right way.
What Goes Up …
For nearly two months, this market has been locked in a one-way rip higher.
Anything speculative — from Coinbase to random AI microcaps — has been running wild.
But last week the air started coming out of the balloon.
Coinbase dropped 16.7% — more of a punch in the face than a “pullback.”
And it wasn’t alone. A bunch of these overcooked names finally hit a wall.
What changed?
Simple: The blind momentum bid dried up.
The buyers who’d been tripping over themselves to chase anything with a ticker finally paused.
And now, it’s not just about riding the wave, it’s about knowing when to step out of the way before it crashes on you.
No, I don’t think we’re heading for some full-blown meltdown.
But I do think the idea of holding positions for two or three weeks just hoping they go higher isn’t smart here.
Not now.
The market is now a two-way street. You’re gonna need to get in, take your profits, and get out.
Shorter holding times. Tighter risk. Better discipline.
The Levers of Power
And don’t forget: What’s happening politically isn’t just drama for the headlines.
Trump already made it clear he wants lower rates — fast.
If he starts stacking the Fed with allies, expect more pressure on Powell and the rest of the FOMC board to play along.
Whether that comes in the form of rate cuts, policy jawboning, or full-on replacements, the ripple effects are massive.
The Fed’s independence is one of the few things markets have always counted on. You start messing with that, and you open the door to real volatility.
So here’s your job: Stay sharp. Trade smart. Take your wins quicker.
And stop assuming this market’s just gonna float higher forever.
Stay street smart,
Jeff Zananiri
P.S. Join Aaron Hunziker Wednesday at 2 p.m. ET for APEX Live, where he’ll walk you through the setups we’re watching, how the market’s reacting, and where the real opportunities are right now.
📅 Today | ⏰ 2 p.m. | APEX Live
*Past performance does not indicate future results
