Posted in
Big Picture
By: Tom Gentile
on November 8th, 2024
Recap and Update on Sectors that were Anticipated Higher with a Trump Win
I’ve been saying all along in the weeks prior to the Presidential election, this week was going to be a HUGE week for the markets.
I have written, taught and done videos giving my insights as to what sectors of the markets and even a stock or two that would benefit from a Trump win, a Harris win and even highlighted stocks that should do well regardless of who wins.
As everyone knows by now, Trump is our President-elect now and so I thought we should look at those securities highlighted prior to the election and how they fared these few days post-election.
I will also give a quick heads up as to what to look forward to from here as a possibility in the very short-term.
Immediate Market Reaction to Trump’s Win
With Trump becoming the 47th President of the United States all three of the major indexes reached new record highs this week, including a 1,500-point gain for the Dow on Wednesday.
Bitcoin (BTC) broke through $76,000 on Wednesday as well, hitting a new all-time high.
The Fed cut interest rates by a quarter-point yesterday, driving U.S. stocks even higher.
Here is my latest video on my YouTube Channel where I discuss the markets this week post-election and if you haven’ subscribed for free to my YouTube channel click here and hit subscribe.
Tom’s YouTube Channel: https://www.youtube.com/@TomGentileTrader
My Latest Market Insight Video
What the Trump Win Did for ETF’s: XLE, XLF and ITA
I authored an article a short time ago stating: These are sectors that benefitted last time Donal Trump was in office and they may do so again should he win.
- Energy – XLE: The Energy Select Sector SPDR Fund
- Aerospace and Defense – ITA: iShares U.S. Aerospace & Defense ETF
- Financials – XLF – The Financial Select Sector SPDR Fund
Here is a snapshot of what the three ETF’s have done since Trump was declared President-elect.
Be Prepared for a Pullback in the Markets
My concern right now isn’t how these ETF’s and stocks that comprise the ETF are going to do over the course of the next 4-years of Trumps term.
It is a more immediate concern of a blow off top.
Many technical analysts are saying the markets are overbought. They have gone up too far without a significant pullback and are due to correct.
I am not going to dispute that.
There is this idea that the market needs to correct before we go even further higher. The thought is people are going to take profits and that will incur a sell off.
I can’t say I disagree with them as I too, have sold into this rally and especially into this Presidential pop.
I welcome an organized sell off to some degree as it will bring back some of my favorite securities to price levels I believe will be found attractive to investors and that buying at that time will quite possibly incur higher prices to come.
To your success,
— Tom Gentile
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