Twenty five states filed suit against the Trump administration over tariffs that courts already killed. The states argue the new tariffs are just the old tariffs wearing a fake mustache. This is the legal equivalent of your neighbor stealing your lawnmower, getting caught, then stealing it again but painting it blue.
The administration replaced duties struck down by courts with identical duties that have a different name on the paperwork. Bold strategy. It's like getting fired from Applebee's for spitting in the food and then showing up the next day in a wig asking if they're hiring.
Retail traders saw the headline and immediately checked if there's a way to trade state lawsuits as a volatility play. There isn't. They're now Googling "how to short the Constitution."
The technical setup here is irrelevant because tariffs are policy noise and policy noise is just noise with a podium. Your moving averages don't care which attorney general is mad. Your Fibonacci retracements aren't adjusting for interstate commerce clause violations. The chart looked the same before the lawsuit. It'll look the same after.
Some guy on Twitter with 47 followers and a laser eyes profile picture posted that this is bullish for his 0DTE calls because chaos equals opportunity. He's never read the commerce clause. He's never read anything. He thinks legal precedent is a type of options spread.
The states want the tariffs gone. The administration wants the tariffs active. The courts already said no once. Everyone's pretending round two will be different. It's the geopolitical version of getting back together with your ex because this time she's really changed.
None of this moves the market more than three basis points. Trade your levels. Ignore the lawyers.
Photo by Markus Winkler on Unsplash
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