April 2 Is Not the End By Michael Salvatore, Editor, TradeSmith Daily In This Digest: - “Liberation Day” won’t mark the end of uncertainty…
- The chart of SPY is still in a short-term uptrend…
- Jeff Clark sees the momentum shifting higher…
- Nuclear energy will test your patience…
- But Andy and Landon Swan think you’ll be rewarded…
You keep seeing this date popping up in the media… April 2… April 2… April 2. To follow April Fools’ Day on Tuesday, the White House is declaring April 2 “Liberation Day.” This will supposedly be when it finally unleashes the full salvo of tariffs. We’ll enact all kinds of reciprocal tariffs on China, the EU, Canada, Australia, Brazil, and lots of other major economies to attempt to get longstanding trade imbalances back in whack. Once this happens, the idea goes, the world will finally get supreme clarity on what the new tariff regime will look like and we’ll all know exactly what to do next. It’s a bit like waiting to go in for major surgery. You’re excited for the day to come, but only so you can get the difficult but necessary thing over with. You’re also, understandably, a little bit spooked about the days to follow, even if the idea of clarity brings some comfort now. (Maybe I’m thinking on this track because I’m going through something like this right now, with my wife and I expecting our first child in about a month.) You might note a tone of skepticism, and you’d be right. I always get a bit skeptical when everyone anticipates some such day where the clouds will lift and the future becomes abundantly clear. For one, this administration has a habit of keeping the world on its toes. You could argue that’s the whole point of the so-called “madman” strategy, where President Donald Trump’s unpredictability is a feature for negotiation rather than a bug. So, just because April 2 is Liberation Day doesn’t mean a whole lot more “liberating” won’t take place in the days, weeks, months, and years to follow. We cannot and must not pin our hopes for an end to uncertainty to a single date. There will always be more. You can either become a short-term trader and learn to adapt to it… Or do something arguably just as difficult and have a long-term investor’s conviction. Let’s say you’re a trader… If you’re a trader, you need to stop reading the news. Full stop. All the information you need is right there in the price chart. Let’s have a look at the chart of the SPDR S&P 500 ETF (SPY). We’ve been watching this closely ever since we established the three major trendlines acting as support and resistance: 
(For a longer-term look at those trendlines, check out Wednesday’s Daily.) In Thursday’s trading, after a big tariff-fear-driven wipeout on Wednesday, buyers stepped in at the black dotted trendline. This trendline acted as resistance last week. Since Monday’s big surge and today’s retest, it’s now support. Flipping resistance and then retesting as support is exactly what we want to see. It’s a sign of a sustainable breakout. We want to close above that black trendline and hopefully close the week strong. The Relative Strength Index (RSI) is also still on its dead-simple buy signal. When the RSI crosses above the yellow line, SPY is a buy… And so it has been for about eight trading days. Is this an oversimplification? You might think so. But for traders, the price action is all we need to see to make money. You want to be long in the short term. Jeff Clark thinks the same way… Our TradeSmith Platinum members are getting to know Jeff Clark right now. All of his research just got added to their subscription for free. (Not only that, Platinum now includes the consumer sentiment analytics research of Andy and Landon Swan as well as exclusive access to our very own Lucas Downey’s Alpha Signals research service. For more on this big change to Platinum, go here for a special message from TradeSmith CEO Keith Kaplan.) If you’re a Platinum member reading this, I’d recommend checking out Delta Direct every so often throughout the day. That’s Jeff’s live trading blog where he comments on intraday price action and occasionally recommends some very short-term setups. For example, here’s what he wrote today in his can’t-miss Morning Update: Yesterday’s action wiped out the hopes of a lot of bulls. The S&P 500 couldn’t hold the opening gains. Then, once it dropped below Tuesday’s low, it hit an air pocket and cascaded lower. Technology and semiconductor stocks were the biggest losers. By the end of the session, the S&P was sitting right on top of its 9-day EMA – having given up about half of this week’s gains. Lots of folks are expecting continued downside action for the remainder of the week. But I’m going to argue otherwise. Yesterday’s action eliminated the short-term overbought conditions created by Monday’s surge higher. The McClellan Oscillators (NYMO and NAMO) are in neutral territory – having pulled back from their upper Bollinger Bands. And the Summation Indexes (NYSI and NASI) have actually crossed over to the bullish side. These are bullish developments. I wasn’t willing to chase Monday’s rally. But, as I mentioned back then, I was looking to buy into a pullback toward 5700. I still expect we’ll get some strength into the end of the month/quarter. Of course, there is plenty of headline risk. The uncertainty created by all the tariff-related news can cause a “rug pull” sell-off at any moment. That’s what we saw yesterday. At the same time… Those of us with longer memories can recall similar action in 2018 (during President Trump’s first term) was a buying opportunity. Jeff’s seeing the momentum shift higher right now… just like we are. So, this isn’t the time to go chasing Wednesday’s flush thinking we’ve just set a lower high. Signs point to more choppy, but ultimately northward action. But let’s say instead you’re a longer-term investor… Well, your job’s simultaneously easier and harder. For one, you don’t have to do as much. You don’t need to come up with trades that will make quick money. On the other hand, watching the market, reading the news, and not doing things is excruciatingly hard. Your conviction is constantly tested. A really good example of a long-term trend that may not pay out for years, maybe even decades, is nuclear energy. We’ve previously pointed to nuclear energy stocks as a blind spot for investors playing both the themes of AI and renewables. Renewables don’t scale well, and despite decades of investment in them, fossil fuels still dominate. At the same time, AI is a power-hungry technological breakthrough that’s not going anywhere. Nuclear is low-waste and high-efficiency, but also high-cost and has a bit of a PR problem… what with most people’s next thoughts going to the Chernobyl, Three Mile Island, and Fukushima containment incidents. Still, this is one of those long-run asymmetric bets that can make a massive difference in your wealth. If nuclear does get to scale and becomes the clean energy solution of the future, you should grab a piece now. Andy and Landon Swan, who also just joined the TradeSmith crew, outlined the opportunity in their March special report they sent out to their MegaTrends readers last week. Check out what they have to say… The AI boom has created a crisis. It has nothing to do with speculative fears of runaway artificial intelligence or philosophical debates over machine ethics. It has everything to do with power – raw electricity, measured in terawatts, and the inability of the global energy grid to keep up with demand. This isn’t a problem to address years down the line. AI is already straining power infrastructure beyond expectations. The world’s largest cloud providers and AI firms are making it clear: Data centers are facing power limitations faster than anticipated, and existing energy solutions are falling short. […] Governments and corporations spent $9 trillion over the past decade on wind, solar, and grid-scale batteries. But even after record investment, the share of global energy consumption sourced from renewables has increased by a negligible 0.3% to 0.6% per year. Renewables have clear advantages, but they cannot provide the constant, large-scale power that AI infrastructure requires. - Energy density: A uranium fuel pellet the size of a fingertip produces the same energy as one ton of coal or 17,000 cubic feet of natural gas.
- Land efficiency: A 1-gigawatt nuclear plant requires 1 square mile of land, compared to 75 square miles for an equivalent solar location.
- Baseload reliability: Nuclear plants operate at an average capacity factor of 93.1%, near or more than double the uptime of most other energy sources – including natural gas (58%), coal (42%), hydro (34%), wind (33%), and solar (22%).
[…] The transition to AI-driven workloads requires a power source that is reliable, scalable, and location-agnostic. Nuclear is the only solution that meets these criteria. Nuclear is hardly on any common investor’s radar right now. One good reason why is the price action. The Global X Uranium ETF (URA), which holds a basket of nuclear energy companies, has gone basically nowhere for the last three years. That’s a tough sell for investors who just enjoyed back-to-back years of 20%-plus gains in the S&P 500. Patience will be key. Those who don’t chase trends, and instead find high-upside ideas like these, are rewarded only in time. Andy and Landon added three best-of-breed energy stocks that will benefit from a long-run nuclear buildout… One of which just so happens to have OpenAI CEO Sam Altman on its board. Subscribers, including our Platinum members, can check out the full report right here. To your health and wealth, 
Michael Salvatore
Editor, TradeSmith Daily | 
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