Trump Bashes Strong Dollar...
The Dollar continued its steep sell off today, after soon-to-be President Donald Trump bashed it, calling for a weaker U.S. currency. Many investors were confused by his weak Dollar stance but need to understand it makes total sense based on what he has said he wants to achieve. Trump is pushing for tariffs on foreign goods so the price of U.S. goods becomes more competitive. Another way to make U.S. goods more competitive internationally? Weaken the Dollar.
Bank Stocks Hammered...
A chain reaction triggered when Donald Trump trashed the U.S. Dollar. Not only did the Dollar fall sharply but it rippled through interest rates as well. The 10 year yield dropped to 2.33%. In addition, reality is beginning to set in that Dodd-Frank will not be easily repealed. Many of the bank stocks surged over 30% from November to December. This was on a euphoric feeling that all regulation was going to vanish. That is not realistic and investors are now finding themselves in a position of fear, knowing these stocks are extremely overbought. Tomorrow Goldman Sachs reports earnings. This will be a possible near-term stabilizing force if they can blow out estimates.
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Earnings Bonanza...
After the stock market closed today, Gigamon Inc (GIMO) reported earnings that fell short of expectations. This is one of the first tech stocks to report and it was not pretty. Gigamon fell over 20% in after-hours trading. Interestingly enough, this Verified Pro Trader isolated a major buy support level for a quick trade...
See the article below and trade like the Pros...
See the article below and trade like the Pros...
More Earnings To Watch...
Tomorrow, Goldman Sachs reports. As mentioned, Verified Traders believe this can either stabilize the financial sector or cause another bloodbath. These earnings will hit pre-market, before the stock market opens. Earnings from Netflix (NFLX) are scheduled to be released after-hours on Wednesday and Thursday after the close International Business Machines (IBM) will report. Both stocks will help shape Wall Streets view of the tech sector.
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Verified Pro Trader Analysis...
The general consensus remains that the markets may be in for a tough time through Friday. While earnings can help shape the daily moves, an overpowering force will be Donald Trump and his continued statements. Verified Pro Traders point out that the stock market reacted early on to the hope he would do many positive things, but his statements lately show possible trade wars and in-fighting about policy. With markets at/near all-time highs, investors should remain cautious.
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