$Direxion Daily AMZN Bull 2X Shares (AMZU.US)$ this morning ...

Canada Mexico we're told day one 25% tariffs on anything that they're planning on importing into the United States because why drugs borders must be secured and if you're going to permit drugs to be trafficked through and illegal aliens to come through then you're going to pay a heavy toll on anything from goods and services going over that border into the United States.

these are not permanent tariffs these are until the problem is fixed and not when they say oh we took care of it it's when Trump says it's been resolved.

so the question is a lot of goods come from China through port cities China also is getting a tariff day one. is getting a 10% tariff day one minimum and this is the first tariff there's going to be more.

so here you got Amazon and you can throw Walmart into that group and any retailer most goods come through port cities they're all going to get hit with a tariff. I remember talking to my manufacturers are not going to absorb these tariffs they will 100% get passed through to the consumer I can guarantee you that. what this means is either the consumer is going to step up and pay more or they are not going to buy that particular good or service. so the million dollar question is how will Amazon and Walmart for example be affected? will people stop buying 10% of goods and services I don't think so I think they're going to continue to consume. what is this all have to do with the price of wheat in Egypt? nothing but what does it have to do with Amazon stock?

Amazon sold from 42 to $35 this particular leveraged ETF. I think it's oversold short term I think even when you take into consideration all of this potential looming issues and problems with the tariffs people are not going to base a purchase off of the fact that whatever they are buying is up by 10%, they are no longer going to purchase they will still spend the same amount of money it just won't go as far. and the reality is under the Biden Harris administration we've had an average of just under 20% increase and some sectors significantly more and yet companies reported Blockbuster earnings and profits. so if companies were able to manage price increases and consumers were able to digest them and it resulted in higher prices higher prophets ultimately higher stock prices then why would it be any different this time??

and the answer is I don't think it's going to be so that's why I am going to be buying more Amazon at these levels because I think going into what will be the Santa Claus rally which people always start talking about it's Thanksgiving week no one saying it yet on TV.. but I expect you will begin to hear it maybe today and a guarantee you Friday and beginning of next week I think Amazon will trade higher it will turn the corner and there's about $5 profit in this trade..