Hey traders, it’s Matt here.
The election came and went …
And no matter how you feel about the results … The market is soaring to new highs.
Take a look at the S&P 500 ETF Trust (NYSE: SPY) chart below. Major indices made new all-time highs three days in a row!
Every candle represents one trading day:
SPY chart multi-month, 1-day candles Source: StocksToTrade
Now, certain stocks are benefiting more than others …Â
Tesla Inc. (NASDAQ: TSLA) is a perfect example!
The stock spiked 35% last week after the election.
Elon Musk is a big Trump supporter. He spent millions of dollars to help Trump get elected. At one point Musk was giving away $1 million a day, randomly, to people that signed his petition.
And now that he’s goody goody with the upcoming administration, his companies could dodge the multiple lawsuits that weigh on business operations.
Among the other potential perks … (I’m thinking about trade sanctions with China and TSLA’s China manufacturing).
TSLA is in a great position as we put a cap on 2024 and move into 2025!
And it’s not just TSLA … TSLA’s silent partners are also poised to shoot higher.
Here’s how we plan to profit off of TSLA’s newfound bullish-volatility!
For more post-election opportunities …Â
How To Trade A Trump Market
Markets were understandably nervous before the election last week.
Prices pulled back and consolidated before the evening of November 5.
But after Tuesday night’s decisive victory for Donald Trump, and republicans in the senate and house, the market shot to new all-time highs three days in a row.
Almost more impressive was the move from TSLA Inc. (NASDAQ: TSLA).
The stock spiked 35% after the election and broke to new 52-week highs. I included a chart below:
TSLA chart multi-month, 1-day candles Source: StocksToTrade
Here’s how to catch this TSLA momentum!
But at the same time, there’s a lot of bearish talk surrounding Trump’s proposed tariffs.
Here are the rumors:
- In some cases, more than a 60% tariffs on Chinese imports (up from the 30% – 50% tariffs enacted during his first presidency and kept in place by Joe Biden).
- Lower but significant tariffs on all U.S. imports across the board.
Analysts and economists worry that the tariff costs will disproportionately fall on U.S. consumers, instead of China or other exporting countries.
And there’s a growing concern that the higher tariffs (coupled with tax cuts) will exacerbate an inflation rate that only just fell in line with the Fed’s goals. (The Fed lowered interest rates again last week amid lower inflation)
Some calculate that Trump’s new tariffs could cost the average U.S. consumer $2,600 per year.
Already, fashion brand Steve Madden is shifting all of its business out of China to get ahead of the curve.
The true cost of any tariffs depend on the details.
Steve Madden is shifting its business to try and find a work around. But some businesses might accept the tariffs and shift higher prices to consumers. It’s difficult to tell exactly how things will shake out …Â
In the short term, stocks are riding high on the prospect of another Trump administration.
One of the biggest factors that’s pushing stocks higher is the idea that Trump’s Presidency will allow for greater dealmaking and less regulation among U.S. businesses.
Our goal is to find stocks that are most likely to gain from the upcoming market freedom.
Luckily, there’s an AI trading bot that does all of the research for us!
Iris is a swing-trading bot that pours through financial data and recent price action to find the hottest multi-day setups in the market.
>> Use Iris to snag some of this Trump momentum! <<
Take advantage of the price action before we see a potential tariff pullback/inflation in the market .
Cheers,
Matt Monaco
*Past performance does not indicate future results