Here's what to expect from the Trump trade in the week ahead

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3 secret way to profit from trump as president. Here's what to expect from the Trump trade in the week ahead. Visit: http://www.sentiment-trader.blogspot.com.au/

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• Publié par: secretinvesments
• Publié le: 22 novembre 2016
• Nombre de lectures: 2
• Langue: English

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Here's what to expect from the Trumptrade in the week ahead WHAT IF YOU KNEW WHICH WAY THE MARKET WAS ABOUT TO MOVE BEFORE IT HAPPENED?SUBSCRIBE TODAY!! & PROFIT TOMORROW!

Here's what to expect from the Trumptrade in the week ahead

Here's what to expect from the Trumptrade in the week ahea d "Here's what to expect from the Trumptrade in the week ahead" so Here's what to expect from the Trumptrade in the week ahead . What to watch..... See below.  The higheryields and stronger dollar of the Trumptrade should continue to dominate markets in the week ahead. At the same time, with stocks near alltime highs, traders are watching to see if gains fade in some of the more bubblysectors of the stock market. The fourday Thanksgivingtradingweek does have some economic data, including existing home sales Tuesday, and new home sales and durablegoods on Wednesday. Plus the fact that There is more moneystartingtopour into the financial sectors. So right now that is a sector

we aregoingto have to watch further. Here is the chart....

Markets have been recalibratingwith moneymovingout of bonds and into stocks since the surprise election win byDonald Trump. The dollar index has risen 3percent to a 14year high, and Treasuryyields, which move inversely to price, are at the highs of the year. Thepresidentelect'spromise to cut taxes and launch a giant fiscal spendingpackage has spurred expectations thatgrowth willpick up,pushingupinflation and leading to higher interest rates. Small caps have ridden the wave, settingnew highs in thepast week, but the broader market did not, with the S&P 500 endingthe week at 2,181, up0.8percent but 9 points below its record close. The small capRussell 2000 was the star performer, up 2.5 percent for the

week at a record 1315. The Russell is now up10 percent since the election and has been up11 days in a row for the first time since 2003. cnbc We could meander more than wepress new highs, because I think we're going to see unwinding of some of the stretched trades," There has been an 11percent gain in the S&P financial sector and the 5percentjump in industrials since the election. The S&P 500 is up2 percent in the same time frame. If more bulls enter the market, there is a situation where the S&P could reach 2,350 in 2017, and 2,500 by2018, before the bull market ends. If the S&P is going to get over 2,200 real soon, it would need a catalyst, inauguration the fact that the incoming Trumpadministration hasput corporate tax cuts at the topof its agenda is a majorpositive. That could bejust the ticket needed. Time will tell. Everyfivepoints of the structural tax rates reduction would boostprofits in the S&P 500 byabout 4percent," Trump proposes a 15 percent tax rate from the current 35percent, but even a 25percent rate would be a big plus. Domestic industries would benefit more than those with a lot of overseasprofits. The Trumptransition in markets comes as economic data was beginningto look better. "The economic data is important and the Fed is onlytalkingabout raising rates two times next year, and bond yields may be

movingtooquickly. He said the move in the dollar makes more sense, and itspotential impact on multinational earnings has notyet started to worrythe stock market. The 10year Treasury yield pushed higher in the past week, tradingat 2.35percent late Friday. 10yearyield is at an important balancingpoint. It is at a level–2.30 to 2.35  that it was at late lastyear when the markets believed the economy was improving and the Fed wasgoingto hike rates four times in 2016. But weakness in China, Brexit and other factors intervened, and the Fed now is only on track to hike once this year, in December. Ifyou believe there has been a fundamental shift in the markets with a Trumppresidency, which means it's going to be more about business investment, capex … thenyields should be higher, north of 2.75percent. If you believe we're still in secular stagnation mode, then yields aregoingto be lower. one negative would be if Trump begins to take steps to change trade accords that would spark retaliatoryaction from tradepartners. that's the wild card," We maybegettingwayahead of ourselves. There is one thingwe can't measure, and that is animal spirits. If animal spirits are risingand confidence is moving higher, that could be surprising,yields couldgo higher than expected more quickly.

The thingwith balancingpoints is they're inherently unstable. We're notgoingto stayhere for long. We're eithergoinghigher in this shared optimistic world, or we'regoingto fliparound saynothingisgoingto to work —we're back to stagflation, Oil is another factor to watch in the week ahead. West Texas Intermediate crude futures ended thepast week 5.3percent higher at $45.69per barrel, amid speculation OPEC and otherproducers will strike a deal on production. We have our overall outlook forpending2017period in the comingnewsletter You cangrab a FREE 14 DayTrial to Our newsletter here.

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