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Triple Shock Rally: Tesla, Tariffs and the Fed’s Silent Power Play
Markets were bracing for a crash — then came Musk’s pivot, Trump’s soft step, and Powell’s poker face. Here’s what it means for your next move.
Market Mastery Digest
April 25, 2025
In partnership with
Musk Hits the Brakes on Distractions, Tesla Accelerates
Hey hey, Market Mastery crew! 👋
Did you get caught in the surprise, again?
Just when you think the market was about to nosedive, boom —Tesla did a 180° turn, and Trump softened his tariff tantrum.
In today’s issue, let’s uncover how these market moves could signal a bigger shift — and how one simple metric could help you avoid getting stuck in a dead-end options trade.
Let’s dive in. 🚀
Before we roll into the charts and headlines, let’s fire up those trading neurons:
Which of the following is a key indicator of market liquidity in options trading?
A) Open Interest
B) Dividend Yield
C) Price-to-Earnings Ratio
D) Moving Average
If you know the answer, shout it out and wait for next week’s reveal 😎
Here’s the answer to last issue’s quiz:
Which of the following assets is most likely to benefit short-term from sudden consumer spending surges?
Market Insight: Powell, Tesla, and Tariffs – The Triple Shock That Steadied Wall Street
So here's the drama: Markets took a hit earlier this week when Trump went on another anti-Powell tirade — calling the Fed chair “a major loser” (yup, his words).
Investors got jittery, fearing another political shakeup.
But guess what?
Trump later dialed it back, saying he wouldn’t fire Powell after all.
That little U-turn was enough to calm the waters and give traders some breathing room.
Powell, cool as ever, stayed the course — promising not to touch interest rates until the data tells a convincing story.
Steady hands in shaky times.
That’s the kind of leadership that keeps the market from freaking out more than it already does.
Meanwhile, Tesla pulled a plot twist of its own — despite reporting a 20% decline in automotive revenue for Q1 2025, Tesla's stock surged nearly 7% on Wednesday.
CEO Elon Musk's announcement to scale back his involvement in government roles and refocus on Tesla's core projects, including affordable models and autonomous vehicles, restored investor confidence.
Analysts responded positively, with price targets adjusted upwards, signaling renewed optimism in Tesla's trajectory.
And then there’s President Trump again, indicating a potential reduction in the steep 145% tariffs on Chinese imports, suggesting something more “sensible.”
That whisper alone sent the indexes flying.
Let’s talk about something every options trader dreads: getting stuck in an options trade that’s going nowhere.
Like a bad date that you can’t leave because you shared a ride.
The trick? Open Interest.
Think of it as your trade’s social circle.
If no one’s hanging out where you’re planning to enter, you might end up with a position you can’t easily exit — aka, illiquid and untradeable.
It’s not just about volume.
Open Interest shows if the party’s still alive or if everyone left and you’re holding the last drink.
So next time you’re about to click “Buy,” do a vibe check on Open Interest.
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Markets can flip the script overnight — what looks like doom one day can turn into rocket fuel the next.
This week showed us the power of perception, timing, and keeping cool under pressure.
Powell gets it.
Musk’s learning.
And now, so are you.
Stay sharp, stay curious, and remember — trading is not about being right all the time — it’s about making the right move at the right time.
See you in the next issue!
