The beneficiaries of the Trump rotation are bank and infrastructure stocks, so far. Individual investors should get exposure to the strengthening niches, if they haven’t already. Do not be tempted to argue with the trend.

Bank stocks are benefiting from the likelihood of a rate hike in December, which CME Group’s FedWatch Tool puts at 71%. Meanwhile, the 10-year Treasury yield is above 2% for the first time since January as yields have leapt since the election results.

I do think we get a small rate hike in Dec but it will be minimal.

Another factor also could help banks. President-elect Donald Trump said on the campaign trail that he favors dismantling the Dodd-Frank law, which many see as an unnecessary drag on bank performance. Heard this but just be careful just because a President, especially one who has never been a Politician wants something doesn’t mean he’ll get it.

The stock market’s Trump effect is being credited with a surge in copper prices, though that suggests that copper traders predicted Trumps’ electoral victory. Copper began rising Oct. 24 and then picked up price momentum. Barclays iPath Copper (JJC) exchange traded fund rose in 13 of the past 14 sessions.

Copper is regarded as a general economic indicator because of its uses in many industrial applications. The recent rise could be either anticipatory or related to infrastructure or both. The heavy volume in iPath Copper argues against a merely technical bounce.

I am  looking for a bounce next week in Nasdaq stocks as some of these stocks like IPHI , ELLI, MELI, SWKS, AVGO COHR are very oversold. All these companies smashed their earnings. Google is the only Fang Stock I am looking at as Bezo’s and Zuckerberg are still voicing their feelings about Trump.

I still like some of the banks and still expect good movement in XLF and XBI       

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  Under no circumstances should the information received from HMT represent a recommendation to buy, sell, or hold any security. These are strictly stock setups for trending stocks in the Market. I am not a registered financial advisor. Information is provided as-is and solely for Informational purposes, not for trading purposes or advice. Please consult your own independent financial advisor before making any investment decisions. 33 years exp. Fulltime Trader.

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