Weekly Update: Markets Pump into Inauguration Day
Good evening, and welcome to this week’s edition of Stealth Trades!
Stocks had a strong week with the S&P 500 gaining more than 3%.
Markets are rising on fresh optimism surrounding President Trump’s inauguration on Monday which many believe could lead to a new golden age in the stock market.
Never has there been a more pro-jobs, anti-regulation President. Trump wants to aggressively cut government waste and spending, lower personal and corporate taxes, remove the red tape and unnecessary bureaucracy, open our oil and gas reserves for new exploration, enact tariffs to encourage fair trade deals with other nations, and make it quicker and easier to start new businesses in America
Love him or hate him, there is no denying that Donald Trump is good for the economy.
I expect to see a flurry of executive orders coming out next week. Many of these will have huge impacts on specific companies and sectors and will likely lead to significant moves in a number of equities.
This is when you want to be paying attention.
Institutions will also be positioning themselves as news comes out. They spend tens of millions to analyze the impact new government policies will have on various businesses. And I expect to see them quickly deploy capital to take advantage of these opportunities.
Watch what stocks and sectors lead in the coming weeks. This will tell you where money is flowing, and which areas are likely to lead the market during Trump’s first 100 days.
The leading subsector over the past month has been energy which is unsurprising given Trump’s known “drill baby drill” stance on American energy.
Natural gas prices, which are down 85% from their 2022 highs, are now beginning to rise.
The United States Natural Gas Fund (UNG) is up 43% since December and climbing.
Nuclear stocks like SMR, NNE and OKLO are also holding their ground. A lot of smart people have Trump’s ear. These people know that nuclear is the only viable long-term solution for our energy problem. So, if the President takes decisive action toward a nuclear future, these stocks could easily double or triple again.
I will be keeping a close eye on the markets in the coming week. The major exchanges are closed Monday in observance of Martin Luther King Jr Day, but be prepared for a wild Tuesday.
Best wishes for your trading,
