Trump pulled off a stunning victory. The Wall Street fashion this morning is to buy Trump stocks, sell bonds, sell gold GLD, and silver SLV, and sell Clinton stocks. The probability is very high that you will lose money following Wall Street in buying Trump stocks and selling Clinton stocks.
Before discussing specifics, let us understand the background.
Let us start by carefully examining the chart of Nasdaq 100 futures NQZ6. The equivalent ETF is QQQ. I would have preferred to use a QQQ chart or S&P 500 chart SPY, because most investors do not trade futures, but ETFs do not trade all hours like futures.
Stock futures initially fell limit down 5% before recovering and even turning positive, as shown on the annotated chart of Nasdaq futures.
This up move is shocking Wall Street again as they were predicting further down move. Wall Street was wrong, and that by itself gives you a reason not to follow them. New readers will ask, “Why should we follow you, Nigam?” My long time readers already know the answer, I have been consistently right.
As Wall Street swung back almost 100% to Clinton prior to the election results, Arora adaptive algorithms were not swayed. My calls are well documented saying that a Clinton win was not a sure thing and definitely did not jump onto Clinton band wagon. It is well documented that The Arora Report was one of the rare advisory services that also was right on Brexit, selling gold when it was $1900, selling silver when it was $50, selling oil when it was $108, selling all stocks before 2008 great recession and going heavily into inverse ETFs as well as shorts before 2008.
Let’s dig down and take a look at what the Trump victory may mean for stocks.
Infrastructure stocks are flying sky high. On the surface, it makes a lot of sense. Trump plans to build a wall on the Mexican border and has been emphasizing improving infrastructure.
It is important to note that infrastructure stocks were also Clinton stocks. One of the favorite Wall Street theses was to buy infrastructure stocks as it was deemed a winning proposition irrespective of who won the election…Read more at MarketWatch
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