The Trump Effect and Market Catalysts
Let's be honest: it is an emotional time in our beloved country.
Now let's be real: we are all about making money. To accomplish making money from the stock market, we set our politics aside and ask ourselves, "how does President Trump effect the stock market?"
Will it make the stock market crash? Not likely. As Kunal pointed out, that's a rare thing. The stock market is incredibly resilient and has the heart of a champion boxer. However, it does react in very specific ways that an astute trader preys upon. These reaction lead to a key concept every swing trader must know: sector rotation.
At election time I pointed to five areas to watch closely for moves based on the "Trump effect". Those were biotech, marijuana, industrial metals, finance/banking, and Russia. While we stalk these sectors with the patience of a lion on the hunt, I already pounced on two of these sectors, trading biotech ETF $LABU and marijuana stock $GWPH.
In today's video, I discuss the winning $LABU trade that lead to a whopping $2300 gain off only a 300 share position. The stock moved a whopping 19% in only 3 days of hold time. I go over exactly how we assessed the market catalyst and how we adjusted our normal entry and exit strategy to adapt to market conditions. At the end of the short five minute clip I also layout the $GWPH trade, which is currently up 10 points.
Watch, learn and let me know what you think!
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