The Repercussions of the Bernanke/Trump Legacy
Between the Bernanke QE program and the Trump Tax Plan, the economy and the markets have a lot of heavy water to carry. This will not be easy or quick to fix and eventually wiser people will take over.
The Big Question is Now……How does one handle the next few months.
Early stages of macro cycles tend to be periods where short term trading technicals work well. One part of this is the fact that the buy and hold crowd becomes very tentative and make it easier for technicals to work.
In the S&P, trading rally’s to the 2650 to 2670 area will find resistance, with the 2540 area providing some support. With the volatility seen lately, fear will be a big ingredient for all players.
For experienced investors, Risk – Offset Program parameters can be utilized with the Short stocks/Long Bonds/Long Gold/Short Commodity positions central to trading.