The world changed on election day, and with it, so did the market. Sectors that have been hot have completely imploded and sectors that have been on the “do not call” list are now en fuego.
The animal spirits have been released so expect more of the same action through year end. All of those underperforming hedge funds are already jumping all over each others throats to chase performance and this will most certainly continue through year end.
The end of the worlders are getting buried in gold and those ridiculous miners now. They had their fun, now that party is over.
How about those staples ($XLP), you know, the “safe” money? Those big multinationals hate a strong dollar……the dollar is on fire, so………
Trump already has a committee to turn Dodd-Frank to pixie dust and rates are starting to rip. $XLF broke the the $20 level which was ENORMOUS last week and the boring banks will now go much higher, maybe even lead. $XLF is probably the only sector that hasn’t taken out pre 2008 crash levels, that”s about $32 or another 10 points higher for $XLF.
So what about the Nasadq?
As most everything made new highs last week, the Nasdaq rolled over and didn’t feel like playing nicely in the sandbox with the others. This will NOT last and I expect a countertrend move to the upside this coming week. The semiconductors acted too well for the Nazzy to stay down. Be long $TQQQ.
This has been my favorite sectors for four ears running. I expect MASSIVE M&A activity moving forward. M&A will not only keep a bid under the sector, but it will most likely drive the sector to new all time highs over the short to intermediate term. This is my wheelhouse and I am all over it.
I am seeing some of the bet biotech setups that I have ever seen right now.
I released four new longs in this space Friday to my Premium Members and I will be reviewing a lot of biotech setups and other things in tonight’s Premium in depth market video.
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