TL;DR

Trump’s policy U-turns triggered market swings, raising suspicions of manipulation. History warns us: blind faith in erratic leaders often ends in tears.

Story

Trump’s sudden policy shifts sent the market on a rollercoaster. His “no intention” of firing Powell fueled a rally, despite Tesla’s losses. Some suspect market manipulation—a “pump and dump” scheme.*

This erratic behavior echoes past crises. Like the 2008 housing bubble, built on flimsy promises, today’s market seems driven by vibes, not value. Charts become meaningless when political whims dictate prices.**

Trump’s tariff talk offered a temporary reprieve for Tesla. But like a band-aid on a broken bone, it doesn’t fix the underlying problems. Beware of sudden surges—they often precede steep falls. Remember Enron? Blind faith rarely ends well.***

*‣ Pump and dump: Artificially inflating an asset’s price (pump) before selling at the peak (dump), leaving others with losses. **‣ Charts become meaningless: When market movements are detached from fundamental analysis (company performance, financial data), technical analysis (chart patterns) loses predictive power. ***‣ Enron: An energy giant that collapsed in 2001 due to accounting fraud, demonstrating that even seemingly stable giants can fall.

Advice

Don’t chase quick gains fueled by political pronouncements. Stick to fundamentals and be wary of sudden, unexplained rallies.

Source

https://www.reddit.com/r/wallstreetbets/comments/1k5iox2/what_happen_on_the_sudden_shot_up/