Good morning, traders,
Tariffs are all over the headlines, but in real markets, they’re barely making a dent — except in the profit margins of giant multinational industrial firms.
That makes sense.
Those companies bear the cost directly, and if revenue growth doesn’t keep pace, margins suffer.
Yet markets barely flinch because tech giants can offset any weakness with massive capital expenditure programs, especially in AI.
That AI capex is delivering real results, supporting growth at levels few other sectors can match.
It’s easy to get entangled in hype around headlines and predictions — trade wars escalate, tariffs rise — but none of that matters if price action doesn’t follow.
Let’s talk about focusing on actual price movement, which is where opportunity lives.
All That Glitters
Take gold: It’s currently on its longest winning streak since February, holding steady despite daily trade chatter and shifts in Fed messaging.
Investors have driven gold steadily higher, seeing it as a safe haven amid trade static and uncertainty about interest rates.
But that rally isn’t signaling an economic collapse.
It’s a hedge.
Gold’s momentum tells you sentiment is nervous, not that tariffs or geopolitics have tilted growth lower.
Now look at Advanced Micro Device’s (AMD’s) Q2 2025 numbers as another example.
Revenue jumped 32% year over year to a record‑setting $7.67 billion, well above the ~$7.43 billion analysts expected.
Client revenue surged 67%, gaming rose 73%, and even data center grew 14%, despite an $800 million hit from U.S. export restrictions on certain chips destined for China.
On the surface, that’s solid data.
Wall Street nodded — but the stock still fell 6%–8% in early trading Wednesday. Investors had priced in more, while the growth trajectory is priced for perfection.
Yet the key is not the gyration.
The point is AMD is delivering underlying strength.
Its AI investments are real, it has a growing data center business and steady client computing demand.
Even with export controls denting margins, total numbers rose.
The market’s reaction reflects expectations, not fundamental weakness.
Here’s what matters: price action.
AMD may have seen a dip on earnings release, but every day it trades is worth watching.
If it holds support and volume confirms, the narrative stays intact. If it breaks down, that’s the change, and not the earnings soundbites.
Same with gold.
It’s rallying, but people buying gold ETFs or bullion aren’t betting on immediate industrial weakness — they’re betting sentiment stays jittery.
If inflation expectations or rates shift, gold could stall. But until that happens, staying alert to price signals is what counts.
Trade the Price
That’s why, as a trader, you pay attention to charts, support and resistance, volume, and sector rotations, not op‑eds or pundits yelling, “Tariffs will crash earnings next quarter.”
So far, tariffs haven’t hit real growth; they’ve hit margins selectively.
Tech and AI capex are powering earnings and revenue growth, overshadowing the profit pressure elsewhere.
If you get caught up in the narrative, you’ll keep chasing noise only after price confirms.
But if you calibrate yourself to the action, you stay ahead.
In short: Tariffs are largely noise, beyond headline-grabbing profit hits in industrials.
Gold is hanging in as a safe‑haven sentiment play.
AMD earnings? Strong topline, margins pressured by regulation, stock pulling back on expectation overload.
But price is what tells the story. That’s your signal.
Ignore the noise, trade the price.
Results follow.
Stay street smart,
Jeff Zananiri
P.S. Join Aaron Hunziker Friday at 10 a.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.
Be ready.
📅 Today | ⏰ 10 a.m. | APEX Live
*Past performance does not indicate future results
