Donald Trump Stock Market Trends and Outlook 2019

Donald Trump Stock Market Trends and Outlook

“You can keep your doctor” slogan and the steep rise in premiums clearly demonstrate the detrimental nature of Obama care. It will be gutted or repealed as it’s one of the worst programs in history; only a crack head could do worse.
Trump’s decision to knock off two rules on the book for every rule created should contribute to creating a more friendly business environment.
The Banking, Energy and Transportation sectors should perform well in the years to come. Banks and transports have already experienced huge gains, but this is on the tip of the iceberg. Trump ’s will gut the Dodd-Frank Act. This will pave the way for banks to speculate and that should provide more fuel for one of the most hated bull markets in history.

Donald Trump Stock Market Trends: Markets are forward-looking beasts

Moreover, the long-term trend for the transportation sector and banking sectors have turned positive. BAC and SAIA are two random stocks we picked from the banking and transportation industry to illustrate the strength behind the current rally.

SAIA Inc is just one of the many stocks in the trucking sector, but you can see how strongly it has rallied over the past few weeks. It has tacked on more than 30% in less than eight weeks and is now clearly trending upwards. There is a strong wall of resistance in the 42.50-44.00 ranges, but once it overcomes this zone, it should soar in to put in a series of new highs.

The pattern in the banking sector is pretty similar to that of the Transportation sector; Bank of America has rallied very sharply over the past few weeks, surging from the 15.00 ranges to almost 21.00 for a gain of over 30%. The stock has broken out and is now trading at new three-year highs; as the trend is up, it is likely to continue trading higher for several years to come. A strong pullback should be viewed through a bullish lens.

Conclusion

Many sectors are breaking out, but the transportation and the financial sectors are two important segments that have the potential to drive the markets significantly higher. The financial sector has been a laggard for a long time, and as the trend change is relatively new, this trend should remain in force for a significant period. The markets have responded well to a Trump win and what we stated in an article that was penned before the election results came in has come to pass; once again proving that as long as the trend is up, every substantial pullback should be viewed through a bullish lens.

From a contrarian angle (and not a political point of view) a Trump win could be construed as a positive development; non-contrarians will demand to know why? Mass Psychology clearly states that the masses are always on the wrong side of the equation. A Trump win will create uncertainty, and the lemmings will flee for the exits; markets will pull back sharply and viola the same old cycle will come into play. The cycle of selling based on fear which equates to opportunity for those who refuse to allow their emotions to do the talking. Full Story

Stock To Buy 2017; Follow the trend and not the noise

In general, we have stated for the past few years that as long as the trend is up, all substantial pullbacks should be viewed as buying opportunities. Some of our readers (claiming to be expert floor traders, etc.) have erroneously assumed that we are advocating a buy on the dip strategy. The keyword they forget to pay attention to is the trend. Individuals like this are famous for flip-flopping, saying one thing today and changing their stance tomorrow.

Be wary of such people and take their ramblings with a barrel of salt. If this was our strategy we should have taken the same position with Gold, but since we bailed out in 2011, we have not viewed pullbacks through a bullish lens because the trend is not positive. However, we have seen the dollar through a bullish lens since 2011 as the trend is positive. Our strategy is based on the trend and market sentiment and as long as the trend is up, the greater the deviation; the bigger the buying opportunity.

Update on Donald Trump Stock Market Trends 2019

The so-called strong pullback and we use the word “so-called” because when you factor in how high this market is trading from its 2009 lows or even 2015 lows, the current pullback is a non-event. Based on the weekly charts of the Dow, there is still room for more downside action before our indicators move into the oversold ranges.

However, the current pullback was sharp enough to create chaos in the sentiment camps. Bearish and neutral sentiment add up to 80%, and this has to be viewed as fantastic development. As we stated in the Sept 25^th issue, we hypothesised that we could be moving towards a new norm.

The new norm is that it’s okay to be a bit nervous and sit on cash, so the only way to shake things up is to trigger stampede and that is what the top players might be gearing up to do. Investors are sitting on a huge amount of cash. Market Update Sept 25, 2019

The trend is positive and one should remember what we have stated all along; as long as the trend is bullish (positive) every pullback regardless of intensity has to be embraced and the stronger the deviation, the better the oppo.rtunity. The human mindset thrives on misery; it’s hardwired towards negativity. Stock Market Under Trump: What’s the Next Stop