Trader Scott’s Market Blog
January 27, 2017
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There are several “anti-Trump consensus” situations I’m watching. This recent post discussed Mexico and that situation will become volatile over the next several weeks. Donald Trump has a big mouth and is a big Tweety Bird, so between his tweets and his chattering there will be some trade/investment opportunities over the next few years – meaning to potentially take the other side. Like “talking down” the Dollar, but after it’s already put in an intermediate high. And then doing it again to push the US$ below the 100.00 handle and really get people convinced the top is in, thereby setting up a long side $ trade. President Obama was a piker in his effect on markets, which is actually about the only thing I liked about him. It’s pretty disgusting how intertwined the powers that be (central banks and governments) are with markets – basically grotesquely incestual.
So with Mexico in the President’s crosshairs with his negotiating style, we have to be watching for some potential big volatility with Mexican stocks. And also with the Peso, which will affect US traded Mexican ETFs, stocks and Funds. If it gets intense with the NAFTA negotiations, there would be a good opportunity to buy Mexican equities, which for the US traded ones are way off their highs thanks to the Peso. The “negotiations” between Trump and President Nieto will likely get more intense. President Trump’s threat to “make Mexico pay for the wall” has been revealed by a plan to charge Mexico a 20% “border tax” (actually a tariff, but that has to remain a secret so the crappy WTO doesn’t find out about it). So let’s see – imports from Mexico get charged a 20% (tariff), and US consumers actually pay the (tariff), but Mexico will supposedly “pay for the wall”. Is this economic theory straight from the Trump School of Economics. No wonder Trump University had so many lawsuits filed against it. I can’t wait to see how the Economist-in-Chief punishes China. Why is it the average citizens always end up paying in the end?
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day.Scott returned to markets over fifteen years ago where he continues as an independent trader.