The Economy… watch for the turn in 3 areas

Trump packed his bags and left Washington this morning. 

No golf for the president this weekend. Instead, he’s travelling to Saudi Arabia. Then it’s off to Israel, Italy and Belgium.

Wish we could say the same as Mayor Gist who spends 3 days at work and 4 days in Alabama…….

The fake news calls it a “do-or-die” trip for The Donald. But the scandalous headlines from earlier this week have died down. Without any fresh meat, the press has no choice but to feed its angry readers a pile of spoiled leftovers.

That means its back to business as usual for the markets. Stocks have been downright tame since Wednesday’s drop then the up turn again. Futures are creeping higher once again this morning, pointing to another modest recovery for the major averages to wrap up the trading week.

Many of the strongest trends remain intact. But if we dive below the surface of the major averages and the market’s leading sectors, we’ll find a few key groups that are vulnerable to further downside action…

The buck jumped to 13-year highs after Trump won the election.

Transports – After last summer’s Brexit bottom, the Dow Jones Transportation Average was one of those down and out groups that started to power higher. Transportation stocks like airlines had been absolute dogs for weeks. But as the market bottomed out, these stocks began to outperform the major averages once again.

And the Banks… watch for the downturn.

 

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