Stock Market Analysis

Monday, December 04, 2017

Tax Bill Passes, Welcomes in Santa Claus Rally!

Welcome back from one of the most uncertain weekends of the recent US market history, the weekend of the passing of the Trump tax reform bill!

Last Friday's market action was truly an extremely interesting one that was obviously a product of extreme fear and extreme confidence!

Extreme Fear in the form of Trump's tax reform not being passed as everything Trump has managed to push through so far has resulted in a significant rally. As such, if his idea fails to push through so far, investors fear it may be the end of the "Trump Magic".

Extremely Confidence in the form of  the certainty that Trump's tax reform is definitely going to be passed as that is something Trump has worked very hard for.

We are not here to discuss the pros and cons and the possible repercussion of such a tax bill but to understand its effect on the stock market. Its effect on the stock market will no doubt be a continuation of the almost irrational and illogical Trump Magic so far. That is why investors and traders are confident enough to take the market back up to almost par at the end of last Friday from a deep deep deep red position!

In fact, the S&P500 made a total intraday movement of about 50 points! That is almost 2% movement all within 1 day! In fact, the last time the S&P500 made such a huge intraday move was all the way back in September of 2017 and to find a longer hammer candlestick, you would have to look as far back as January of 2016!

Indeed, last Friday's move was a VERY rare move and one which suggests an extreme amount of confidence which was well paid off last weekend as the house passes the tax bill! In fact, market futures are always pointing sharply upwards in anticipation of a very positive outcome in the stock market. In fact, me and my Master's Stock Options Picks subscribers were also pre positioned with a few new call options positions since last Friday which are no doubt going to be making us some handsome bucks if the market continues upwards.

This is also no doubt going to be the start of Santa Claus Rally 2018... are you prepositioned and ready for it? If not, quit cutting yourself short and join me for just $1 miserable dollar!

For now, the market continues in all out bull trend.


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