The Trump rally continues as the civility on display for the world to see emboldens and encourages investors. The handshake and mutual platitudes from yesterday’s meeting at the White House revived a rally that was clearly losing steam.

Donald Trump calling Barack Obama a “very good man” and Obama jokingly telling Trump not to answer reporters that shout out questions as the warring parties make nice in front of the American public. The transfer of power in the strongest nation in the world makes us proud- and when we’re proud, we tend to do extraordinary things.  

Trump Train

On Monday, the Dow Jones Transportation (DJT) average broke out big time adding credence to the rally as a harbinger of the economy.  Another element to the move might be the possibility that President- Elect Donald Trump might get the key players in the North American Free Trade Agreement (NAFTA) to blink much sooner than anyone thought possible. 

Yesterday, Canadian Prime Minister Justin Trudeau said he was willing to renegotiate the deal while Mexican President Nieto agreed to meet with Trump before his inauguration.  One of the last parts of the imbalanced deal was allowing Mexican truck drivers to drive goods beyond the border and to their final destination.  Previously, they would drive goods over the border and American drivers would take it from there.

The Teamster union, citing harm to truckers and the warehouse industry, hated the idea and filed a lawsuit when the pilot program began in 2011; however, President Obama allowed Mexico to squeeze $2.0 billion in tariffs on U.S. tomatoes and potatoes before blinking. He signed the deal to allow full unfettered access with his counterpart Nieto in 2015.

American trucker stocks were on fire at the time. It peaked with the Dow Jones U.S. Truck Index hitting 576 on March 20, 2015, and then promptly tumbling to a low of 448 by July of this year- a decline of 22%.

So truckers are on fire to the general belief that the domestic economy is ready to come to life (hauling the components of a massive infrastructure means big money, in addition, greater consumer spending), but I bet there’s smart money out there that sees a Ronald Reagan-like  pre-inauguration coup. The Gipper got Iran to blink and to release 444 American hostages. I bet Trump will get concessions on the NAFTA sooner rather than later.

Trump vs. Silicon Valley

It’s no secret there is no love lost between Donald Trump and Silicon Valley, but the animosity has reached a new level, as major powerbrokers are now working to get the nation’s most populous state to secede and form a nation called ‘New California.’

Shervin Pishevar is a very successful venture capitalist who is currently working on the Hyperloop transportation system with Elon Musk.  His home was used to host a George Clooney fundraiser for Hillary Clinton that raised $2.3 million.  When it became clear on election night that the GOP nominee would win, Pishevar began his 25-page proposal on California’s secession. 

Other well-known Trump adversaries such as Mark Zuckerberg and Jeff Bezos were making nice with the next President of the United States via positive comments on social media. However, many believe they are gearing up for battles as well.  

This isn’t the first time we are hearing about California’s secession. It has come up in the past; it was usually concentrated in the northern part of the state, which is the only region that voted for Trump on Election Day.  

California	PARTY	VOTES	PCT.	E.V.
Hillary Clinton	Democrat	5,488,261	61.5%	55
Donald J. Trump	Republican	2,969,532	33.3	—

This time, the talk is backed by big money and overwhelming opposition to President-Elect Trump among state’s voters and tech moguls. In fact, California has the world’s sixth largest economy - one could argue who has the most to lose.

I know this kind of talk always fades, but it’s serious enough at the moment that it is impacting the share price of big tech names:

• Amazon (AMZN) -3.84%
• Facebook (FB) -1.94%
• Telsa Motors (TSLA) -2.98%

Part of the tech sell-off was a typical rotation out of very profitable names to stocks breaking out. The fact is the former, mostly creates paper wealth and the latter are industries that create jobs for hard hat workers; jobs that reflect a theme Americans have longed for as well. 

This is a battle over different jobs and skills Silicon Valley is seeking from outside America, and while we won’t be redrawing maps anytime soon, this is going to be a doozy.  As for names in the thick of the battle, all their shares would be buys on further dips.

Stock Market & Corporate Earnings

After the close on Thursday, several names posted results that ensured major moves in their share prices:

• Disney (DIS) missed on top and bottom and the stock initially declined 2.6%  but has reversed higher by 2.41%
• Nordstrom (JWN) crushed consensus that sent its shares up 6.9%
• Nvidia (NVDA) announced a big buyback and dividend hike and its shares soared 12%
• Michael Kors (KORS) delivered for the quarter but not guidance and its shares are under pressure 

Today’s Session

Market opened lower. We are not forcing the issue this morning. We want to see a consolidation of recent gains, with 18,636 holding as possible support for the Dow.  We plan to be aggressive buyers of dips, so keep head on swivel and be prepared. If you are not on the Hotline, call your account representative or email us at info@wstreet.com to get started today. 

 

Comments

Aliens & their technology (fallen angels) would find haven in the pit (bay area) Anything of the new of the world anything of the 30day cycle , these are all things of the beast who is yet to come as antichrist. Pray for Trump ! They will try to turn him into a globalist! (one worlders) Tom Douglas on 11/11/2016 9:06:57 AM

And into the leadership vacuum lasting for what has seemed an intolerable time walked a leader. All most unrecognizable except to those in desperate need of relief... Thank you Charles for your amazing show. I watch with even more pride as we see the beginnings of a rebirth of capitalism where the market can decide what is best and NOT the state. Ray Weldon on 11/11/2016 9:58:44 AM

Globalists seek to drive the world to its lowest level not to bring the lowest among us up. In this way they seek to make slaves of the world. Ray on 11/11/2016 10:34:24 AM

The legacy of Obama is complete by his resurrection of an almost dead Republican Party. Obama's arrogance and his bypassing of Congress by his illegal executive orders, galvanized enough citizens to breathe life into a Republican Party left for dead by the Bush Dynasty. Thank you Mr. Obama. Sabc Alton on 11/11/2016 10:38:54 AM

Slight correction, if I may. It wasn't "Northern California" was the only region that voted for Trump. The "red regions" on the electoral map are the uninhabited areas of the state (forests, deserts, BLM/Nat'l Forest/Parks). Sadly, the state demographic has shifted dramatically, and all the formerly dependable conservative population centers (San Diego, Orange, San Bernardino and Riverside Counties) have all turned blue. I HOPE this is a simple "wrong candidate" situation, but I am making plans to get out of SoCal. kev on 11/11/2016 12:35:38 PM

Again I'm amazed how naieve I'am.never realized Zuck, Bezos et al were such Leftist. They make a Bazzilion $$$ and don't like Basic AMERICAN Values??? Incredible!!! Calif was such a FANTASTIC place before The LIB's ruined it!! Unbelievable....How did it happen?? It's time for another revolution in Calif...RISE UP and get started!! JOHN GUENTHER The old vet on 11/11/2016 12:51:25 PM

Haven't seen our "President" try to explain how elections and democracy works to our young folks... Thought he was an educator at one time.... probably a myth. Barry Gold on 11/11/2016 1:00:25 PM

Thanks for the information I watch your fox show alot Michael Sondgeroth on 11/11/2016 1:05:53 PM

A Post Script..... if all these people don't like it here.....LEAVE!!!!! I'll even carry your bags...BYE...BYE..JG Charles ..love what you do and provide...a True American..Thank You!! JOHN GUENTHER on 11/11/2016 1:49:46 PM

On nationalism vs globalism! Just what is the advantage to any US citizen in a globalist economy? What has the past 26 years of the New World Order proven other than our national economy has suffered tremendous loss? Have the globalists really thought it out? Better yet, why are they hiding the truth? Just what happens to citizen rights once globalism is achieved in a world with no borders? Don't you know there will be no citizens in a borderless, globalist economy because only nation states can grant rights? Don't believe me just look at the EU, a non-elected administrative body, and how it has replaced citizen rights and liberty with welfare and regulations. The bottom line is that "globalism" follows the same Marxist model and is nothing more than a ruse to disguise its communist identity. Tom Hennigh on 11/11/2016 6:07:14 PM

I agree with John Guenther. Most college students and other so-called educated citizens don't know the difference between Nationalism and Globalism. Nor do they understand the fatal flaws of Marxism/Communism. They know only what they have been indoctrinated with. Lloyd Elledge on 11/12/2016 8:38:02 AM

Let California leave and then we should tax any of the products that are produced there or produced by companies that are based there at least 50% when they ship to the 49 states. Virgil Cannarsa on 11/12/2016 10:07:23 AM

Let California leave and then we should tax any of the products that are produced there or produced by companies that are based there at least 50% when they ship to the 49 states. Virgil Cannarsa on 11/12/2016 10:08:02 AM

I am on the Nationalist. In saying that, I believe in trade,"Fair Trade". The system for the last decade has brought America on our knees. Gary Coburn on 11/12/2016 11:06:57 AM

these people should be tagged with colored dies. so we can keep track of them when they come into our neighborhoods. some times blind people loose track of them. maybe a cow bell will do the trick. I am old and need all the help I can get.....where am I again. george s on 11/15/2016 12:41:44 PM

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