Market is off a bit this morning but all I expect is a small pullback. We are in seasonally strong times now. Along with that in 2 months the crushing regulations that are killing our business community will all be lifted in one swell swoop. Pen and Phone will take care of that.
Obamacare will be gone another factor that is crushing small business.
There will be set backs of course but the headwind now should be at the back of the markets at least until the dreaded month of May:)
I am long several stocks now and looking to get longer. Breakout trades are going to be wide open now and my cautious approach will shift a bit to holding for longer duration.
Mean reversion is now a distant memory and we are now at overbought levels but nothing severe.
There are two news items that have quite a bit of significance to me going forward. Its a trend that unless it is stopped will ruin a lot of business’ and sports franchises.
The first is the CEO of GRUBHUB asking for employees resignations who voted for Trump. Now if I were on the board of directors of this company this guy would have been gone by now. The CEO job is to maximize profits for the company and not get his company entwined with divisive political rhetoric. Their stock tanked after this statement. I suggest it will not even remotely recover until this guy is gone. Even then the stigma will stay with the company for a long time.
Secondly is the NFL. The Commissioner of the NFL has come out publicly now and stated that Trump being president will effect the good they have done for abuse of women. Here is another guy that has got to go. The NFL right now is in free fall as a result of the social warriors that want to bring politics into the game of football. And now this statement by the commissioner might hasten the demise of the NFL.
These two trends if allowed to continue will have a devastating effect on the business who participate in this practice. I am all for the 1st amendment. I am for everyone’s right to have an opinion and being able to express it. But there is a time and place for that.
The heads of these business’s have a responsibility to shareholders to not alienate 1/2 of the population to the point it seriously effects their business. Now you would think that would be a given but evidently not.
I only mention this because it has the potential to seriously effect the markets. If this continues or expand from where it is now the backlash will be enormous.
This is not meant to be directed solely against liberals . I would equally critical if it was coming from conservatives and it has in the past.
The above is probably more than you wanted to hear this morning on the subject but as geopolitical events have calmed down a bit now this is the most pressing issue I see on the horizon for U.S. Business.
Again I expect a pullback but a small one soon. These markets will most likely be making new highs for some time right now.
One other significant change is Dodd Frank is dead. I suspect it will go the way of Obama Care come January. This will open the spigot for financing that is crushing the resale of higher priced homes. I know , I am in one:)
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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