Driving Sales Before the Tariff Hits the Fan

As Consumers Spend Big and the Fed Freezes, Markets Brace for What Comes After.

Author

Market Mastery Digest
April 18, 2025

Black and white photo of a row of Honda Accords at a dealership in Fairfax Virginia with emphasis on the headlights.

Auto Buyers Rush In — But What Happens After the Dust Settles?

Hey Market Mastery crew! 👋

Just when the markets were catching their breath after last week’s tariff surprise, consumers hit the shops hard and Powell dropped a caution bomb.

Today’s issue uncovers what’s driving market moves, how one trading tool separates amateurs from pros, and what you can do to grow your income daily — even in choppy conditions.

Let’s jump in.

Quick quiz before the action:

Which of the following assets is most likely to benefit short-term from sudden consumer spending surges?

  • A) Long-dated Treasury Bonds

  • B) Utility ETFs

  • C) Luxury Goods Stocks

  • D) Gold Futures

We’ll reveal the answer next week!

Last issue’s answer:

Trump’s tariff pause caused a strong market rebound. Which type of investor is most likely to benefit from such sudden macro-driven reversals?

Answer: B) High-frequency traders. (Explanation: Trump’s tariff pause caused lightning-fast reversals in the markets — the kind of moves that high-frequency trading (HFT) algorithms are built for. While long-term investors were still digesting the news, HFTs were already in and out with profits booked.)

Market Insight: Shoppers, Tariffs, and Powell’s Poker Face

The market’s been anything but boring this week.

First up, U.S. retail sales soared 1.4% in March, the biggest monthly jump in two years.

Americans rushed to buy cars, electronics, and other goods before Trump’s tariffs kick in — a textbook case of “buy now before it gets worse”.

But while consumer wallets were flying open, Fed Chair Powell was tightening his tone.

Powell made it clear: the Fed is not in a hurry to cut rates, and the full impact of tariffs on inflation and growth needs time to unfold.

Investors didn’t like the ambiguity.

The S&P slid 2.2%, and fear started creeping back in.

Now here’s another twist: China has stepped into the ring.

Over the weekend, Beijing issued a diplomatic nudge to President Trump — urging him to “heed rational voices” and reconsider the reciprocal tariffs that have sparked market jitters globally.

Markets are watching closely.

If tensions keep rising, expect more volatility.

Let’s talk about one of the most underrated tools in a trader’s playbook: Average Daily Range (ADR).

In simple terms, ADR measures how much an asset typically moves in a day.

And that’s crucial — especially if you're aiming to generate consistent daily income.

Here’s the thing: Not all price moves are worth chasing.

Some days, the range is too tight.

Other times, the volatility is all over the place.

ADR gives you a reality check — is there enough room to profit, or are you walking into a trap?

At Super Investor Club (SIC), ADR is one of the key indicators that we review before pulling the trigger.

It helps ensure every trade we take is backed by solid risk-reward logic — not just a hunch.

Pair this with smart position sizing and clear price levels, and you've got the foundations of a system built for clarity, consistency, and cash flow.

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This week we’ve got consumers reacting to tariffs before they hit, a cautious Fed trying not to fan the flames, and of course, tariffs.

In short: uncertainty is still on the menu.

But uncertainty isn’t a bad thing — it’s a reminder to stay sharp, stay informed, and stay nimble.

Whatever plays out next, remember: you don’t need to predict the future — you just need to prepare for it.

Until next time, trade safe! 🚀