Tariffs continue to be the wild card swaying markets, but traders can agree that it clears a pathway for potential ideas. The Supreme Court’s landmark ruling that struck down presidential tariff authority could create a high-velocity trading environment—a perfect setup for Direxion’s suite of leveraged-inverse ETFs.
Single-Stock ETFs to Watch
The byproduct of the Supreme Court ruling could be trade barriers shifting aggressively at the sector-specific level. In particular, the impact could be felt most by heavy hitters in the technology and automotive sectors.
That said, here are potential single-stock ETF trade setups with companies who rely on international manufacturing and global components:
- Apple: +Direxion Daily AAPL Bull 2X+ (AAPU )/ Direxion Daily AAPL Bear 1X Shares (AAPD )—With the iPhone maker relying on overseas manufacturing, news regarding tariff authority could affect hardware margins.
- Tesla: +Direxion Daily TSLA Bull 2X Shares+ (TSLL )/ Direxion Daily TSLA Bear 1X Shares (TSLS ) —Tesla has an expansive global “Gigafactory” network for electric vehicle (EV) and battery production, which means any trade news could impact their international supply chain.
- Nvidia: +Direxion Daily NVDA Bull 2X Shares+ (NVDU )/ Direxion Daily NVDA Bear 1X Shares (NVDD ) —Like Tesla, the semiconductor stalwart has a complex international supply chain that could make it a lightning rod for volatility related to tariffs.
- Amazon: Direxion Daily AMZN Bull 2X Shares (AMZU )/ Direxion Daily AMZN Bear 1X Shares (AMZD )— Amazon relies on imported consumer goods for its retail arm, which means the Supreme Court ruling could impact the cost of goods sold as well as shipping logistics.
Whether the tariff ruling pushes these names up or down, traders have the flexibility with these single-stock options for tactical positioning.
Global Ramifications
In addition to single-stock ETFs, the Supreme Court’s ruling on presidential tariff powers could also impact country-specific ETFs. With that, here are three additional trades to consider:
- China: Direxion Daily FTSE China Bull 3X Shares (YINN ) / Direxion Daily FTSE China Bear 3X Shares (YANG ) —China has been at the tariff epicenter (with tariffs reaching as high as 145%) so any trade news will likely impact these ETFs.
- Mexico: Direxion Daily MSCI Mexico Bull 3X Shares (MEXX ) —Because of Mexico’s “nearshoring” status, the country is highly vulnerable to trade news.
- South Korea: Direxion Daily South Korea Bull 3X Shares (KORU ) —With tariffs on Korean automobiles, lumber, pharmaceuticals, and semiconductors, the country is already assessing the impact of this ruling.
Given the latest trade news, the market environment calls for tactical tools that can capitalize on concentrated, high-conviction trades that can move the needle. Again, Direxion’s innovative suite of leveraged and inverse ETFs give traders that much-needed flexibility.
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