Supreme Court Tariff Verdict Tomorrow: Volatility Tsunami Incoming, Why Day Traders Need to Brace (or Bail)?

TL;DR: Tomorrow's Supreme Court ruling on the legality of President Trump's tariffs could trigger massive market volatility. As a day trader and mindset coach, I usually focus on trading psychology and strategies, but this is a big deal! Expect wild swings, size down your positions, or even sit it out to protect your capital and mental game.

Hey everyone, it's Coach Yoann here, your go-to guy for day trading tips, mindset mastery, and a bit of fitness motivation on the side. If you follow me on X (@coachyoann), you know I keep things real: I talk about conquering those trading emotions, building unbreakable discipline, and spotting setups that can turn your day around. Rarely do I dive into macro events like this, because let's face it, as day traders, we thrive on charts, volume, and that inner voice telling us when to pull the trigger. But tomorrow, January 9, 2026, we've got something huge on the horizon: the Supreme Court is dropping its decision on whether Trump's sweeping tariffs are legal or not.

For a quick recap (without getting too bogged down in the politics), these tariffs were slapped on under the International Emergency Economic Powers Act (think duties on imports from China, Canada, the EU, and more) aimed at balancing trade deficits and boosting U.S. manufacturing. Lower courts already called them illegal, but they've stuck around while the Trump admin appealed to SCOTUS. The justices seemed pretty skeptical during arguments back in November, and betting markets are leaning toward them getting struck down (only about a 30% chance of upholding). If they rule against the tariffs, we're talking potential refunds for importers, a hit to Trump's trade agenda, and a shake-up in global supply chains. On the flip side, if they're upheld, it could greenlight even more executive power on trade, keeping those higher rates in play (we're already above 15% on average).

Now, why am I breaking my usual routine to chat about this? Because as day traders, we live and die by market moves and this could crank the volatility dial to 11. Remember when Trump first announced these tariffs? Stocks tanked 5% overnight, Treasuries surged as folks rushed to safety, and then we bounced back hard. Markets hate uncertainty, and a SCOTUS bombshell like this could send the S&P 500, Nasdaq, and even individual sectors (think manufacturing, tech imports, or exporters) into a frenzy. We're talking wider spreads, rapid reversals, and those fakeouts that test even the strongest mindset.

What does this mean for us as day traders? First off, protect your edge. Extreme volatility isn't always your friend, it can blow up accounts if you're not careful. Here's my take:

• Size down: If you're trading tomorrow, cut your position sizes in half (or more). Why risk a full load when the market could gap 2-3% on the news? Preserve your capital; that's rule #1 in the trading game.

• Stay nimble: Focus on liquid names with clear levels. Avoid thin stocks that could get whipsawed. And hey, if you're feeling the emotional pull (anxiety creeping in?), step back: that's mindset 101.

• Consider taking the day off: Yeah, I said it. Sometimes the best trade is no trade. Use the time to review your journal, hit the gym, or read a book on mental toughness (I'm loving "The Let Them Theory" by Mel Robbins right now, it's all about letting go of what you can't control, which fits perfectly here).

At the end of the day, events like this remind us that trading isn't just about the charts, it's about adapting to the bigger picture while keeping your head straight. We've seen markets recover from worse, and with stocks hitting records in 2025, a ruling either way could set up some epic opportunities once the dust settles. But tomorrow? Play it safe, folks. Your account (and sanity) will thank you.

FAQ:

Q: What exactly is the Supreme Court deciding? A: They're ruling on whether Trump had the authority under the IEEPA to impose broad tariffs without Congress. Lower courts said no, but SCOTUS gets the final say.

Q: How might this affect the overall market? A: If tariffs are struck down, expect short-term drops in stocks tied to trade wars, potential USD weakness, and boosts for importers. If upheld, it could strengthen manufacturing plays but add inflation pressure.

Q: As a day trader, should I trade the news directly? A: Only if you're experienced with event-driven volatility. Otherwise, wait for the reaction to settle!

Q: What if the ruling causes a crash? A: Markets are resilient; we've bounced from tariff announcements before. Focus on risk management, and remember: volatility creates setups for those who stay disciplined.

Q: Why do you think traders should size down or sit out? A: Because mindset matters, overexposure in chaos leads to emotional decisions. Better to miss a move than blow up your progress.

If you've got more questions, hit me up on X or check out my site for more trading insights.

Coach Yoann

https://www.coachyoann.com

Disclaimer: This article is for informational and educational purposes only, not financial advice. This article does not constitute an offer or a solicitation or a recommendation to buy or sell any securities, financial product or services by nShape Capital (''Coach Yoann''). Furthermore, nothing in this article is intended to provide tax, legal, or investment advice. All readers should do their Due Diligence before making any financial decision. Click here for full disclaimer: https://www.coachyoann.com/disclaimers.