The current GE commercial where the millennial talks about his new job at the industrial giant with his parents is a perfect reflection of today’s society. His father beams with pride and breaks out his “granddaddy’s hammer.” He is proud that his son will have a job rolling up his sleeves, sweating, and building upon the foundation of things that made America great in the first place. 

Of course, his son struggles to explain to his dad that the job is coding computers; while rolling up his sleeves is optional, it’s not necessary. The only time he would sweat is if he is late on assignments.  His dad’s displeasure is obvious as he challenges his son to pick up the hammer and his mom tries to make peace, suggesting that her son will “change the world.”

https://www.youtube.com/watch?v=3xGoBlI_fdg

There’s no doubt that the father and his wife in this commercial voted for Donald Trump, but the son probably joined in with his Silicon Valley friends and voted for Hillary Clinton.

America is at a crossroads. While we need carpenters, craftsmen, and several other industrial jobs, we also need to be a player in the ‘Knowledge Economy Century.’ Speaking of which, it’s already begun and will dictate where the most wealth and power will go over the next one hundred years.

Getting away from politics, this has got to be the message everyone understands and need to work toward.  We must graduate science, technology, engineering, and mathematics (STEM) students. The best must be groomed starting from kindergarten.

The Market

There is no doubt the Trump Rally is looking to pause, but midday lulls on Monday were being greeted with late buying as investors were extremely excited about the possibilities. This continues to be reflected in transportation names, which got a big boost after the close on news Warren Buffett has taken stakes in four airlines. Buffett may not admit it, but he is buying into the Trump economy – big time. However, it’s not just airlines- remember the dry bulk index?

Dry Bulk Index

There are a lot of areas that reflect new hope for the economy. There is one that might seem odd based on worries of the global trade war - the Dry Bulk Index has rallied 230% from its lowest point in January and 15% since the election. Dry bulk ships carry 15% of the world’s total merchandise, which is mostly focused on ore, coal, and grains.

Years ago, there was a time when this index was being used as the primary gauge for the health of the global economy.  Carriers began ordering ships that were more than 1,000 feet long and got in trouble when the world economy slumped. It’s not a pure proxy for what’s going on; as of now, the rally is due, in part to renegotiated deals. However, there is an element that reflects the health of trade.

Interestingly, this move (already set in motion) implies the market doesn’t see a trade war. In fact, it sees a Trump economy that will spur growth, putting America in a position to be the straw that stirs the global drink.

The star in the industry is Dry Ships (DRYS), which rallied 208% yesterday, and 813% over the past five sessions. By the way, if you think that’s too much and too fast to understand, the stock is still down 99.9% from its May 2008 split-adjusted high.

In addition to momentum in the hottest Trump Economy stocks, there are other areas to watch.

Yesterday, I watched for a rebound in crude oil, which has been crushed and looked oversold.  Perhaps that needle will get a boost with the announcement of the Secretary of Energy, which happens to be a pioneer in the industry.

Also, I am watching tech and the key names, which have a little more room, lower to key support points.

Today’s Session

Equity futures have been higher all morning, but haven’t been able to gain traction, but that might change with a series of economic reports including a very robust retail sales report.

October and September are the strongest back to back months since 2014.  Remember last week I wrote about signs of budding consumer confidence, which I think has grown exponentially since the election of Donald Trump.  Department stores and restaurants continue to struggle.

This morning Home Depot raised guidance, but the retailer of the day is Advanced Auto Parts, which crushed the street and hiked guidance.

It is on the upswing and should get better, but this morning, I would like to see some names on my buy list pullback a little.