Trump Warrants Pushing All-time Highs
For those of you who are less familiar with warrants, I like to think of warrants just like options. Except that warrants are issued by the company while options are issued by the exchange.
Last night was ugly.
It was like democrats did that on purpose, just so it was obvious to the rest of the country that it was time to move on.
The markets are reacting accordingly with Trump Media common stock up double digits in the pre-market, and the warrants supporting that move.
Now, looking for broadly, the stock market hates uncertainty. Whether you like the trump or the biden, or whether you dislike these men, at least the market knows what it's getting with both of them.
If there is a curveball that is thrown by the democratic party that brings more uncertainty to market participants, then that is a risk that could bring a spike in volatility between now and November.
Broad markets are relatively muted since last night, which is interesting.
To me, the biggest risk is that one of these two guys is not the candidate that the market has believed them to be.
But after last night's disaster for the biden, the fact that markets are not reacting likely means that a lot of this has already been priced in.
Trump was likely to win. Now he's even more likely to win. And the market likes that.
If the democrats were to bring in a candidate that could potentially have a chance to win, then that would be the curveball.
It's not about how good the president is or whether you like him or not.
It's about the uncertainty that a new potential president could bring to stocks.
And based on what the market is doing, there is little uncertainty at this point.
Last night didn't change that.
We’ll get into much greater detail on which stocks specifically we want to buy right here this coming Monday @ 6PM ET during our LIVE Monthly Charts Strategy Session. Premium Members make sure to register here, if you haven’t already!
See you there!
JC
New Monthly Charts
Hard to believe it's already the last trading session of the first half of the year. Take a minute to reflect...
Now let's get ready for the second half of the year.
The big risk right now is in NOT having enough exposure as we enter what could be a historic bull market rally.
I'll explain in detail on Monday at 6:00 p.m. ET.
ASC Premium Members, click here to register for the July Monthly Candlesticks Strategy Session if you haven't already.
If you're not an ASC Premium Member, call Mary at +1 (323) 421-7910 to talk about upgrade options or click here to join us RISK FREE.
As always, if you have any questions about recent price action and what's happening with markets right now, you can always drop us an email.