The Trump Rally Continues

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Markets continued to rise across the board this week, with the Dow Jones up 0.53%, the S&P 500 gaining 1.03% and the NASDAQ jumping 2.10%. The MSCI Emerging Markets Index also recovered 1.34%.

Advertisement.

Big gainers in your Alpha Investor Letter portfolio included NVIDIA Corporation (NVDA), which moved 8.66% higher; Home Depot (HD), which jumped 5.29%; Albemarle Corporation (ALB), which gained 5.22%; and Liberty Broadband Corp. (LBRDK), which rose 4.16%.

Several positions moved back above their 50-day moving averages and changed to a Buy. These included First Trust US IPO ETF (FPX), Home Depot (HD), Albemarle Corporation (ALB) and Liberty Broadband Corp. (LBRDK).

Four positions hit new 52-week highs: Berkshire Hathaway (BRK-B), Vanguard Russell 2000 Index ETF (VTWO), Guggenheim S&P 500 Equal Weight ETF (RSP) and the Guggenheim Spin-Off (CSD).

Advertisement.

What a difference a month makes.

In late October, the world had taken a Hillary Clinton U.S. presidential victory for granted, and pretty much expected the U.S. economy and stock market to muddle along sideways as it has for the recent half decade.

It took a surprise win in the presidential race by Donald Trump to shift the market’s mindset to full-on bullish mode.

Fast forward a month, and all of the most popular market indexes — the Dow Jones, S&P 500 and NASDAQ — each hit new all-time highs in the past week.

Advertisement.

That said, the market has been schizophrenic. On several occasions in the past week, the market recorded as many 52-week lows as it did 52-week highs.

That’s because U.S. small-cap, banking and energy names have soared, while previously strong U.S. technology and emerging market stocks have pulled back sharply. That’s why you see positions like Berkshire Hathaway (BRK-B), Vanguard Russell 2000 Index ETF (VTWO), Philips 66 (PSX) and Guggenheim Spin-Off (CSD) rallying sharply, while previous tech and biotech high flyers like Intuitive Surgical (ISRG) and the iShares Exponential Technologies ETF (XT) lag by way of comparison.

Exclusive  Day Trading Uses Three Strategies of Andrews’ Pitchfork

This is rather sudden sector rotation that has caught many investors flat-footed. I expect this shift to be temporary and for previous technology and biotech names to soon regain their footing.

Finally, I want to wish you and your family a happy Thanksgiving holiday. My parents have just flown across the Atlantic Ocean to celebrate their first Thanksgiving with their grandson, Victor, in what will surely be a memorable occasion.

Portfolio Update

Advertisement.

Berkshire Hathaway (BRK-B) added 0.76% last week. Warren Buffett has a sizable position in Wells Fargo bank. Despite all of its recent troubles with unauthorized accounts, Mr. Buffett has held on to all of his shares. With the drumbeat of higher rates (possibly coming next month) and a pro-growth President-elect Trump, the financial sector has been super-charged over the past few weeks. Looking at a Wells Fargo chart, this stock has not only fully recovered from previous events, but just recently broke above its long-stubborn $151.00 price level. BRK-B is a BUY.

Vanguard Russell 2000 Index ETF (VTWO) rose 2.43% last week, more than doubling the S&P 500’s 1.03% rise. I’ve been recommending small caps in one of my other trading services, Bull Market Alert, and their performance has been quite strong. Typically one of the first horses out of the gate when markets turn bullish, small caps are a must-have holding in any portfolio — especially over the long term. VTWO is a BUY.

Guggenheim S&P 500 Equal Weight ETF (RSP) rose 0.95%. The most popular market indexes, including the Dow Jones, S&P 500 and NASDAQ each hit new all-time highs. Not surprisingly, RSP followed in its big brother’s footsteps, also hitting a new 52-week and all-time high. RSP is a BUY.

Exclusive  Stocks Hit New Highs… Then Bitcoin… and Now Gold: Welcome to the New Roaring Twenties!

Guggenheim Spin-Off (CSD) moved 1.08% higher over the past five trading days to hit a new 52-week high. CSD is a position that capitalizes on the action of spinning-off corporate entities. With most stocks rallying over the past weeks, it is no surprise that CSD would follow suit, as any company looking to divest itself of a business unit is more likely to do so during bullish times. CSD is a BUY.

PureFunds ISE Cyber Security ETF (HACK) traded nearly level last week, dipping just 0.43%. Data security is a never-ending and serious risk. Just ask Hillary Clinton about WikiLeaks and its effect on her presidential run. The online dating site FriendFinder also just revealed that more than 400 million user accounts were hacked — the largest breach ever reported. HACK is a BUY.

Home Depot (HD) jumped 5.29% last week as trading volatility continued to swirl around this home improvement name. Home sales figures jumped 2% last month to hit their highest levels since 2007. However, with an interest rate decision looming in December, buyers are seeing the writing on the wall and making last-minute home purchases before mortgages get more expensive. HD moved above the 50-day moving average last week and is now a BUY.

Advertisement.

NVIDIA Corporation (NVDA) roared 8.66% higher last week to hit yet another 52-week and all-time high. By all measures, your NVDA position appears to be on track to deliver you a double-bagger for Christmas. A “double-bagger” is trader-speak for a 100% gain in a position. Remarkably, this has occurred in just five months’ time. With the fourth and first quarters historically strong, NVIDIA could be the gift that truly keeps on giving into 2017. NVDA is a BUY.

Exclusive  Act Now or Pay Later: The 2025 Tax Surge Is Coming
share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE