Does The Trump Rally Look Sustainable Or Vulnerable? - SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) | Seeking Alpha
Chris Ciovacco has written an excellent article about what to expect with stock market direction under Trump. As usual, the outstanding charts that Chris shows tell it all. The charts are bullish rather than bearish. In addition, sector charts like JJC and IYT are also bullish. Trump is intent on making the economy better, and I believe the market will melt higher with infrastructure stocks outperforming the general market.
Sunday, November 13, 2016
Saturday, November 12, 2016
Real Estate Review: Trump Wins, REITs Re-Price, Construction Surges - iShares U.S. Real Estate ETF (NYSEARCA:IYR) | Seeking Alpha
Real Estate Review: Trump Wins, REITs Re-Price, Construction Surges - iShares U.S. Real Estate ETF (NYSEARCA:IYR) | Seeking Alpha
This is an outstanding article about the dramatic rise in construction stocks since Trump has promised to build out our infrastructure. One construction ETF that the author mentioned is PKB, and I am buying it Monday morning. I believe the President will be able to keep his promise about rebuilding America, and construction stocks like PKB and VMC are the way to go except that Vulcan Materials (VMC) has a big overbought gap up that will probably come back to a more reasonable buying level.
Secondly, the author mentioned the fall of long-term bond prices, and this is related to foreigners selling bonds as well as people getting out of bonds to buy growth stocks. So, bonds are not the place to be right now. This also affects some preferred stocks since the preferred stocks may hold bonds.
This is an outstanding article about the dramatic rise in construction stocks since Trump has promised to build out our infrastructure. One construction ETF that the author mentioned is PKB, and I am buying it Monday morning. I believe the President will be able to keep his promise about rebuilding America, and construction stocks like PKB and VMC are the way to go except that Vulcan Materials (VMC) has a big overbought gap up that will probably come back to a more reasonable buying level.
Secondly, the author mentioned the fall of long-term bond prices, and this is related to foreigners selling bonds as well as people getting out of bonds to buy growth stocks. So, bonds are not the place to be right now. This also affects some preferred stocks since the preferred stocks may hold bonds.
Friday, November 11, 2016
FANG Is Dead - Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha
FANG Is Dead - Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha
Here is a very important article about why the FANG stocks are dead, especially Amazon which was the leader of the group. The market believes that AMZN may be topped out on revenues because companies cannot go up forever, and we have seen the same thing happen in the decline of Apple. From a technical standpoint, Amazon's top is also confirmed by Elliott Wave theory where wave 5 is the peak of the stock or the market itself.
Nevertheless, the author also believes that Amazon will be a buy at $697 for a trade where you might want to get off at $800. Whether you accept this trade or not, you could probably find other stocks to buy on market pullbacks. For example, the Dow went up while the Nasdaq went down on the Trump victory. Therefore, UDOW (3x Dow ETF) might be a good buy for a trade whenever stocks go down because the Dow seems to like Trump. You will need to sell for a profit at some point though because we are so near the peak in the market that buy and hold is dead.
Here is a very important article about why the FANG stocks are dead, especially Amazon which was the leader of the group. The market believes that AMZN may be topped out on revenues because companies cannot go up forever, and we have seen the same thing happen in the decline of Apple. From a technical standpoint, Amazon's top is also confirmed by Elliott Wave theory where wave 5 is the peak of the stock or the market itself.
Nevertheless, the author also believes that Amazon will be a buy at $697 for a trade where you might want to get off at $800. Whether you accept this trade or not, you could probably find other stocks to buy on market pullbacks. For example, the Dow went up while the Nasdaq went down on the Trump victory. Therefore, UDOW (3x Dow ETF) might be a good buy for a trade whenever stocks go down because the Dow seems to like Trump. You will need to sell for a profit at some point though because we are so near the peak in the market that buy and hold is dead.
Making Sense Out Of Trump Victory And Bond Bloodbath - SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) | Seeking Alpha
Making Sense Out Of Trump Victory And Bond Bloodbath - SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) | Seeking Alpha
This is a great article on why government bonds are going down while big company names in the stock market are also sinking. Foreign governments are dumping bonds because they don't like the possibility of trade wars happening with Trump as the President. Usually government bonds are a safe place to hide when stocks are going down, but this is not the case in the new world order.
Secondly, interest rates are going up whether the Federal Reserve raises rates or not. This will result in a downturn for real estate, and the short real estate ETF, SRS, might be the best way to trade this scenario. Moreover, businesses will also be tanking because higher interest rates will make it harder for them to expand their companies or even keep the status quo.
Thirdly, while some say that banks thrive in a higher interest environment, the other side of the coin is that banks can lose on defaults and fewer loans due to the higher interest. This affects the so-called safe preferred stocks that have been paying attractive dividends. They are tied to banks enough that they will go down with the rest of stocks as interest rates rise.
This is a great article on why government bonds are going down while big company names in the stock market are also sinking. Foreign governments are dumping bonds because they don't like the possibility of trade wars happening with Trump as the President. Usually government bonds are a safe place to hide when stocks are going down, but this is not the case in the new world order.
Secondly, interest rates are going up whether the Federal Reserve raises rates or not. This will result in a downturn for real estate, and the short real estate ETF, SRS, might be the best way to trade this scenario. Moreover, businesses will also be tanking because higher interest rates will make it harder for them to expand their companies or even keep the status quo.
Thirdly, while some say that banks thrive in a higher interest environment, the other side of the coin is that banks can lose on defaults and fewer loans due to the higher interest. This affects the so-called safe preferred stocks that have been paying attractive dividends. They are tied to banks enough that they will go down with the rest of stocks as interest rates rise.
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