Could Trump's Speech Sink Stocks Again?

President Trump will address the country tonight

Feb 5, 2019 at 11:36 AM
facebook twitter linkedin


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...
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners