SWS Stock Market Insights 04.27.25

Bullish Now?

Well, heres the thing. Things seem like the worse is behind us, but until the economic uncertainty clears up we are not out of the clear.

Key Market Movements:

$SPY ( ▲ 0.42% ) did what it was supposed to do, respect moving averages. Nothing special. If you were an investor that got shaken up by the media saying “the sky is falling” you should upgrade or at least write down your wrongdoings. I will provide more technical analysis and levels to premium members later in the reading.

Stocks on Discount:

• Freebie | $NKE ( ▲ 2.77% ) | Buy Rating At $57.

• Freebie | $PEP ( ▲ 0.9% ) | If this could trade below 100, this can alert our buying alerts.

⚠️ Heavy News Explained

Let us explain why this is key and our plan for the market…Here's how that affects stocks — and why it’s a huge warning signal:

📦 1. Demand Shock

• Empty ships mean exports out of China are collapsing.

• China is the world’s manufacturing hub — if their factories aren’t shipping goods, it signals U.S. consumer demand is falling or retailers are pulling back orders (anticipating a slowdown).

• This is bad for retail stocks (like $WMT, $TGT, $COST), because it hints at weaker inventory flows and softer holiday/fall season sales.

🚢 2. Supply Chain Disruption

• Even though U.S. retailers might still have inventory now, supply gaps will show up in 2–4 months.

• Empty shelves = higher prices = inflation spike.

• This risks another inflationary wave, hurting consumer discretionary stocks ($XLY) and growth sectors (tech).

💵 3. Economic Warning

• Shipping demand collapsing is often a leading indicator for recession.

• It's like a freight recession hitting early — transportation companies (like $FDX, $UPS, $ZIM) could report weaker earnings next.

• Commodities (oil, metals) also react because less shipping = less demand for energy/materials.

We’re just getting started.