Analyzing Today’s Market Action, Post Trump Win

It was not all carrots. There were plenty of sticks. In spite of markets surging by 250, just 67% of stocks went higher. Amongst the best performing sectors were in construction and resources. The theory is, Trump will fuck the EPA and tell the polar iced caps to fuck themselves. America has both oil to drill and coal to mine.

For me, the greatest standouts were in the refinery sector, an industry beguiled by Saudi Arabian pressures on U.S. production. Here’s the bullish thesis in a nutshell.

Trump permits wanton oil exploration, which creates a widening between the price of WTI and Brent, a key profit center for domestic refiners. This spread, which was once very bountiful, has been reduced to nothing at all — ever since U.S. production slowed thanks to cheap crude.

Amongst the winners were HFC, ALJ, DK, CVI, WNR and PBF.

Some losers in the consumer goods sector were found in multi-nationals, like BUD, STZ and DLPH. It’s worth noting, RGR dropped by 14% — because Trump is friendly to 2nd amendment rights. Funny how that works, no?

In the financials, REITs collapsed as rates spiked. Banks roared higher, due to a widening yield curve. And private prison stock, CXW, raged higher on the belief that Trump is going to use them to toss all of the Hillary Clinton supporters in their cells. Truth be told, the blow out of the U.S. yield curve is indicating inflation — for better or for worse. Higher rates might fuck the economy — but banks will love it, at least for a bit.

Biotech and big pharma were massive winners today, with big gains in stocks like RARE, SGEN, PFE and CELG. It is widely believed Trump will not screw them over in a way that Hillary would’ve, as she implemented Obamacare 2.0. Truth is, any healthcare reform will result in squeezing the margins on big pharma. Both hospital and insurance stocks, like HCA, THC, CNC and LPNT, were sent to hell today. The Obamacare gravy train has ended. It’s worth noting, PRSC plummeted today. That company is literally a play on welfare. Perhaps Trump will reform our entitlements programs too.

Amongst the industrials, U.S. Steel led the way higher, ticker symbol X. Truth be told, in Exodus, I had created my 2nd half of 2016 GARP portfolio with a Trump presidency in mind. U.S. steel will be one of the biggest beneficiaries of trade protection versus China.

In services, online education stocks roared higher. They’ve been under extreme regulatory pressures from the Obama administration. The idea is logical, since liberalism festers and thrives within the confines of our Universities and colleges. It makes sense to crush the online players, in order to protect brick and mortar. Being that Trump had an online education service himself (lolz), this sector might thrive under Trump. The winners were CECO, STRA, LOPE and DV. Also, ESRX surged ahead. Perhaps they will be given even MOAR powers to negotiate drug prices lower? Seeing both GILD and ESRX surge on the same day makes no sense — but that’s the market.

In tech, S was the big standout and solar stocks absolutely collapsed. Names like SPWR, CSIQ and JKS were clown raped. It’s bad enough being a solar panel maker under Trump, who doesn’t believe the climate change nonsense. But to be domiciled in China is a whole new set of issues for shareholders to deal with. I’d avoid like the plague.

Utility stocks dropped hard due to rates rising. Gone are the clean energy subsidies from Obama and the weening off from coal. Those fuckers will be buying cheap as shit coal again and like it.

I hope this helped you understand what the market was saying today. If you only looked at headlines, you would’ve never noticed the 4d chess game our asset managers were playing today.