Lutnick thinks the pause on China’s tariffs likely won’t last much longer, despite the uncertainty.

    by VT Markets
    /
    Jun 13, 2025
    A senior US official has shared their thoughts, but they aren’t influencing current policy talks much. The attention remains on Donald Trump’s decisions. Trump’s choices are unpredictable, which creates uncertainty in US policy. Many believe that he often changes his mind about his original views. This shows a familiar trend: when Trump indicates a direction, the market reacts. However, that reaction may not last. Policy clarity often becomes unclear as statements fluctuate and intentions shift without notice. In the past, we’ve seen how sudden changes can increase market volatility, especially in short-term contracts that react quickly. Traders should think about how much of Trump’s initial talk turns into actual action. Overestimating political risk too soon can lead to problems if the tone lightens or reverses. We’ve seen this happen repeatedly—positions based on bold statements often end up on the losing side when talks revert or stall. Such unpredictability leads to unreliable forecasts. This puts pressure on those trading long-term volatility or holding leveraged positions to consider the message and the messenger’s history. For traders, patience might be more beneficial than acting impulsively. Often, being cautious around major news events has preserved value better than chasing fleeting momentum. Hesitation in policy can impact not just geopolitics, but also the overall market atmosphere, where quick reactions can occur. We’ve noticed that accounts that dynamically assess risk adapt quickly during these times. The midweek spike wasn’t just about data changes; it showed how sensitive positioning is to shifting narratives. These moments favor those who focus on market skew and tail risks. If history repeats, the gap between initial messaging and final actions often grows. Few signs indicate a stronger commitment to policy changes; these inconsistencies stress the importance of engaging with broader options rather than sticking to narrow views. Some may try to downplay volatility early on, expecting calm before more clarity emerges. Historically, that approach tends to be short-lived. A couple of miscommunications—more likely than they should be—can quickly increase volume and risk overnight. So, this week’s drop in premium may be seen as a buying opportunity, not a sign of stability. In these times, one effective strategy is to stay quick on your feet, publicly doubtful, and privately ready for changes. Flexibility is essential; anything too rigid risks being wrong just because the mood changes suddenly. We’ve examined intraday movements alongside press cycles, and the results are revealing. Price changes follow not just the words spoken, but also how committed people perceive the speaker to be. Those metrics collapse if inconsistency appears. Volume first builds in short gamma positions and then spreads to delta hedging spirals; we observed this pattern last month, with speed nearly doubling in just 90 minutes. As announcements continue, being systematic may present fewer risks than trying to predict what will stick. Let the data confirm policy developments before making significant directional bets. In this environment, protection is not costly—it’s often misunderstood.

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