MARKET’S REAL PROBLEM IS OBAMA BUT TRUMP MIGHT STILL PREVAIL $UUP $NUGT $DUST $WFT $MU $BAC $JPM $FCX $XME $AKS $MT $X $CLF $JJC

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MARKET’S REAL PROBLEM IS OBAMA BUT TRUMP MIGHT STILL PREVAIL $UUP $NUGT $DUST $WFT $MU $BAC $JPM $FCX $XME $AKS $MT $X $CLF $JJC

The stock market’s real problem is Barack Obama.

Let me explain: For eight years the Republicans were united in their dislike of him, but now that he’s gone, they’re have difficulty staying united. The failure of the health-care bill Friday is proof positive that the Republicans are having a tough time without Obama around.

Now that the health-care plan has failed, investors’ focus will be on tax reform. President Trump may be able to lower corporate taxes, which would help the market the most. In addition, if he can make progress toward deregulation and infrastructure spending, the stock market would get even more of a boost. (Please see “Here’s the case for Dow 30,000 in Trump’s first term.”)

The annotated chart

The annotated chart is of the S&P 500 exchange traded fund called SPDR S&P 500 ETF Trust SPY,  Please click here to see the annotated chart, which shows that major support is nearby. Please also note that the relative strength index (RSI) will be oversold if the market dips into the support zone.

S&P 500 futures have dropped to below the 50-day moving average for the first time since the election. In traditional technical analysis, that is a negative. However, traditional technical analysis does not always work well these days because of its easy availability and wide adoption. Often when those following technical analysis sell on the breach of a moving average, the “smart money” steps in to buy.

Ask Nigam: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.

Gold flies as dollar dips

See also  HOTTER INFLATION – MOMO BUYS THE BAD NEWS, JP MORGAN CEO SAYS RECESSION NOT ‘OFF THE TABLE’

Gold is higher, and the dollar is lower, erasing most of its post-election gains. PowerShares DB U.S. Dollar Index Bullish ETF UUP,  is approaching the top end of the support zone. The dip here is a natural retracement after a strong rally…Read more at MarketWatch

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