There is now only one call to make in the stock market.
What is the Trump Presidency going to do to the stock market. I’m a Brit so call this post-election interference but the answer to this question is now the key to profits or loses in the coming couple of years..
Like or loath the Democrats, its hard to say that they did not oversee a buoyant US stock market. It is ironic that the churls of the stock market and the beneficiaries of the copious liquidity juicing asset values have risen up and are about to try and up end the system responsible for the sort of valuations in the stock market and liquidity in the VC arena that made them Lords of Creation. As a Brit though, I do irony.
However that’s not the point. We should be stoic and change what we can and accept the rest. What we can change is our personal circumstances and if we have a large proportion of our wealth in assets, we need to call whats up next and its going to be, BIG, BIG, BIG.
At this point I could break my theories down and we could go on a bumpy ride of speculation but we need to face the fact economics and markets are very hard to call and even Nobel Laureates can call it wrong on something as basic as inflation when amateurs like myself can be spot on.
So lets use invoke the greatest market AI to help is devine the future. That is of course the hive mnd that makes up the market, so lets go to the Nasdaq chart and listen to what it is telling us. It’s the drive of the whole enchilada.
To me his chart is tremendously useful.
Right now the market has formed a gnarly knot of volatility.
That means it doesn’t know to laught of cry. Consequentially the market is deciding whether to do the following. Lets continue to keep it simple.
So here is where we can say ‘sure’ that looks like a fork in the road we can live with, lets watch to see which route it takes.
So this is how to do that.
This is an idea going back so far its painful. The idea is uncertainty, creates volatility which is bounded. When the range of volatility is breached the market is on the move in that direction.
So you pick your red lines and watch the market decide. Then you jump on board.
This can be tricky in a random market, but this is no random market. Very non-random things are underway and we know the outcome is going to be heaven or hell. Its Charon at 18000 and the Pearly Gates at 21000.
I agree with the market right now, ‘who knows.’ The tension comes from: guess the outcome of chopping 20% of government spending out of the economy versus the execution of a group of really smart people doing the surgery.
To most of us, the words and actions of genius is often indistinguishable from those of madmen. The market will figure I that out for us and it shouldn’t take long.