$DIA, $SPY, $QQQ, $RUTX
FLASH: President Trump is focused on the Fed, calling for lower interest rates and a lower USD
Donald J. Trump is the biggest driver of financial markets in the world, and I write about him daily in this column.
Savvy participants are making money off by anticipating his moves, which are not hard to predict, I have been watching him for over 15 years.
This is what he wants and gets, as follows:
- Stocks are higher.
- Interest rates are lower.
- The dollar is getting weaker.
- Crude Oil is reasonable
A fight with President Trump is a fight with the tape, never fight the tape.
It is really Nutz, but people do, they fight with him all the time. We can see it in the people out there trying to short bonds. That when President is literally ordering the central bank to lower interest rates and threatening to fire Chairman Powell unless he gets his way.
The Big Q: Why short bonds?
The Big A: Do not short bonds.
President Trump has shredded decades of presidential norms, setting new precedent. The result in more executive interference at the Fed, resulting in sharply higher inflation but fewer recessions.
And that is what savvy participants can trade on.
President Trump has power, and has been hammering the Fed for months. Interest rates have been coming down in the US and around the world in concert. He has lowered interest rates globally, so why fight with that?
President Trump will not stop until interest rates are negative and the Fed is stimulating with QE, and I am not kidding.
President Trump is the most transformative US President in a long time. He has shredded the legacies of the Bushes, Clinton and Hussein Obama. That is what the voters sent him to the Oval Office to do, he is doing it, promises made promises kept and keeping
The take away, do not short him, front run him,
President Trump is focused on his goals, making and keeping America Great.
Recall, when tax reform was going on, he was laser focused on it, Then, trade, then tariff came in and steel stocks ran up, a great trade at the time, that counts.
And now President Trump is focused on the Fed, and then what?
The Big A: He will be focused on the Fed, the ECB and Crude Oil and he will have a profound effect.
If you read this column regularly you will learn where President Trump stands on just about every financial asset in the world.
He does not like tech, he thinks drug prices are too high.
He likes Crude Oil and coal and mining, basic materials.
He hates Mexico, loves Japan…and so it goes.
Whether you like President Trump or not, leave feel at the door and focus on making money on his goals, that is the winning bet.
HeffX-LTN’s overall technical outlook on the major US stock market indexes is Bullish with our Key indicators flashing Very Bullish in here.
Have a terrific 4th of July!
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