We’ve definitely run into some resistance as of late. Part of the recent reticence in stocks is due to the Nov-Dec rally, post election, which caught everyone off guard. Now we’re digesting recent gains, sitting around doing nothing, while Mother Market decides where to take us next.
Much of our future is dependent on the Trump movement, how much he can get done in lieu of Washington shills interfering in his populist ways. Also, Federal Reserve policy might begin to play a key role soon, especially if their tightening is compounded by ECB and BOJ tightening. Next thing you know, we’re all in the back of a jam-box trying to sort out our lives in a post-capitalist society.
For the year, there are extreme losers (extra Bernie Sanders) — in light of the grandiose headlines being purported. For example, Department Stores are down 20%, Oil and Gas Exploration -17.3%, Long Term Care Facilities -14%, Food Wholesale -12%, Apparel Stores -12% and Drug Delivery -11.5%.
On the upside, there is Nuclear +25%, Aluminum +25%, Semis +21%, Consumer Services +19%, Home Improvement Stores +19%, Security and Protection Services +18% and Residential Construction +15%.
So what do we glean from all of this pin action?
Retail dominated industries are the plague, as well as anything healthcare related due to the uncertainty of Trumpcare. All of the Trump themed trades are doing well, but crowded. There have been many people piling into commodities and construction plays in hopes of a gigantic infrastructure bill.
I think it makes sense to accumulate larger industrial names who will benefit from better trade deals, lower tax rates, and a boost in global GDP. With my money, for now, I am 100% long $WLK. That might change, as I dig deeper into this narrative.
The bull is alive and well, in spite of its sluggish demeanor. Bide your time and watch the headlines closely and hope the country doesn’t implode before we can make our fortunes.If you enjoy the content at iBankCoin, please follow us on Twitter