Wednesday’s massive stock market rally continued Thursday, as Trump-centric industries went on a tear. But today, Veterans Day, stocks seem to be taking a break.
WASHINGTON, November 11, 2016 – While the usual Soros-paid buffoons “protested” the unexpected results of Tuesday’s presidential election, Wall Street continued Wednesday’s massive Donald Trump rally on Thursday with another impressive, volume-driven charge. On Friday, November 11—the somewhat-forgotten U.S. holiday known as Veterans Day—markets have decided to take a break, with averages mostly down as of the noon hour while hinting, just a little, that they might yet reverse before the close.
Both the big-company DJI and the broader-based (and more representative) S&P 500 were up strongly Thursday, with the Dow entering record territory while the tech-heavy NASDAQ looked sickly. That tech-heavy average was down about half a percent, largely due its overweighting in Apple (symbol: AAPL).
That company, like other mega-techs, has been suffering a reverse-Trump effect similar to Amazon (AMZN), which was also down sharply Wednesday. This is largely attributable, at least for now, to The (now President-elect) Donald’s campaign pledge to discourage the outsourcing of American jobs abroad—a practice that’s made the high-tech industry hugely profitable over the years.
Copper, in fact, broke out decisively from its lengthy period in the doldrums Thursday, a phenomenon that’s more important to the over all economy than the metal itself. If copper sustains this uptrend, that would mean that Those In The Know expect a YUGE building and infrastructure boom, not a little one. That’s why the investment world often refers to this metal reverentially as “Dr. Copper,” the oracle that foretells robust bull markets when its price is on the ascent as well as crushing bear markets when its price goes off the cliff.
It looks as if the building, banking, insurance, energy and infrastructure sectors are actually happy that the Republicans ran the electoral table Tuesday. On the other hand, Trump is viewed as tech-hostile for the reason cited above.
In addition, disinvestors in tech are also worried that Trump might screw with the international tax advantages that have for years led to most tech companies, like Apple, offshoring nearly everything they do while parking trillions of dollars in foreign countries to avoid the ridiculously high U.S. corporate tax.
Oddly, Trump might actually end up helping most of these companies to repatriate those foreign deposits by giving them some kind of a tax break if they do so, a simple solution to repatriating a massive amount of essentially American funds–something Barack Obama obtusely refused to do, apparently regarding the U.S. corporate tax rate as entirely too low.
But first the Brexit and now The Donald’s “Trexit” have got the populist ball rolling in the Eurozone and elsewhere. As the advisor to Little King in the “Wizard of Id” comic strip once famously observed, “The people, sire, are revolting.” Today, that’s just what the average Joe, Jean or Juan is doing in country after country, sick and tired of being dictated to by an obviously clueless political, academic, economic and business elite, so who knows what will happen next.
When you ignore your actual constituents for decades, a change agent will inevitably appear. The Brexit and The Donald may be the harbinger of things to come.
So where’s that big crash that even the Maven thought might happen after the Trump Tsunami? Gone, at least for now. Or until that McClellan Oscillator hits way overbought rather than way oversold, which means the equal and opposite reaction of a sudden stock market correction.
We live in weird times. But for investors, at least, the last couple days have been mostly fun for those who were sitting in the right sectors.
As for those crybaby protestors in Chicago and elsewhere? Well, what can you do with idiots who are just fine when they win, and the worst sports in the world when they lose. It’s hard to take these nasty, hostile snowflakes seriously. Like the infants they are, they’re used to having things their way, and if somehow the unthinkable should happen, as it did Tuesday evening, it’s not their country and they want their mommies.
But that’s the way it is. We’ll just have to wait and see how things go down. In the meantime, the hot sectors are changing and we’ll all need to adjust portfolios accordingly. Maybe during that overbought correction that’s trying to get started today.
Veterans Day Holiday note: Today, Veterans Day, is business as usual on Wall Street with trading in stocks, bonds and other securities taking place during regular trading hours. However, Veterans Day is NOT a settlement day, so be sure you count an extra “business day” if you’re looking to get cash for a recent or upcoming parade. Meanwhile, do take some time out today to honor our veterans, who, over the centuries, have fought and died to keep us free.Click here for reuse options!
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