It's been a month since my last weekend article and I have missed writing it and, hopefully, maybe one or two of you have missed reading t as well.
This week was indeed a tumultuous one and another one of those weeks that caught almost every trader by surprise. No one and I mean no one as correctly positioned for Donald Trump to be elected our next President. If they tell you they expected him to win, maybe so. However, if someone tells you that they were positioned for the massive ensuing rally, they are flat-out lying to you through their teeth.
When it became apparent that Donald Trump was emerging the winner, late on Tuesday night, our futures kept diving and at one point the S&P futures were down almost 120 points. Huge downdraft indicated. However, come Wednesday morning, almost off the open, the indices were off to the races and almost everything was up.
The only sector that had major trouble rallying was the tech sector, thanks to the noise making the rounds that President-elect Trump would take revenge on Silicon Valley for its lack of support throughout his campaign. Trump does come across as a wild and crazy, fly-by-the-seat-of-his-pants type of guy. However, can anyone imagine the president of the United States going after Silicon Valley? How insane would that be given the amount of clout the Valley has and the number of jobs created by tech land companies? The president will eventually do what he said he would after he won the election, which is be a president for everyone, individual or corporate. He needs Silicon Valley -- bygones will be bygones soon enough -- and the sector will bounce back and bounce back hard once the algos/robo-traders are done jacking everyone around.
Over this weekend we could hear from the Trump camp about some important appointments to his cabinet. I for one can't wait to see who comes on board to join his administration. I bet you the list will more than likely be impressive after all is said and done.
Unfortunately, next week we return to the madness of our Federal Reserve with a total of 13 scheduled Fed speeches starting with Kaplan, Lacker and Williams on Monday, followed by Rosengren and Fischer on Tuesday. Wednesday will bring us Bullard, Kashkari and Karker. On Thursday we will hear from Dudley and Evans. Finally, on Friday, Bullard, George and Kaplan will regale us with their "words of wisdom." Oy vey, indeed!
We also have the usual plethora of economic data both here at home and overseas and with earnings season not quite done with, we have the following tech companies reporting next week:
Monday we have a rest day from tech company earnings.
Friday we will again have a rest day from techland earnings.
On a lighter note,
Q: What's the difference between an economist and someone with Alzheimer's?
A: The economist is the one with the calculator.
With that, I wish each and every one of you a safe and joyful weekend with your loved ones.