Could Trump's Speech Sink Stocks Again?

President Trump will address the country tonight

by Josh Selway

Published on Feb 5, 2019 at 11:36 AM

So far it's been a solid year for U.S. stocks, with the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) just wrapping up impressive six-week win streaks. While we're now in the thick of earnings seasons, investors tonight will be focusing in on President Donald Trump's second State of the Union speech.

Some traders may use the occasion to speculate on certain stocks, possible infrastructure names or defense contractors. Generally speaking, however, bullish investors will simply be hoping for a better outcome than what we saw after Trump's first State of the Union address last year. Specifically, Schaeffer's Quantitative Analyst Chris Prybal just reminded us that the S&P 500 Index (SPX) struggled mightily in the days following last year's address. with the broad-market index shedding 8.5% in the seven days afterward.

state of the union stocks

We can obviously say that these are different times and can't just blindly expect this type of weakness again. But just to stoke some fear, we could point out that, according to Bespoke, the percentage of overbought SPX stocks just topped 50% for the first time since last January...

a schaeffer's exclusive

PLAY TRENDS LIKE A PRO!

5 tips to leverage profits in this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Broadcom Stock Slips Despite Earnings Beat
AVGO posted earnings and revenue that exceeded analysts' estimates
GDP, Nike Earnings Headline Calendar
Dow name Nike is scheduled to report earnings on Thursday
IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.