3Dollars: February 8, 2017

A quiet day for this administration meant a historic tie-breaking vote from VP Pence to confirm Betsy DeVos as Secretary of Education and a party-line vote to confirm Sen. Jeff Sessions as Attorney General. Politics aside, in the thick of earnings season Gilead flopped on weak forward guidance and missed earnings, dropping around 7% (opportunity??).

$1 Financials dragged down the Dow amid continued concern that banking was overbought last week. I still see this sector as a longer term win under the Trump administration, pending Dodd-Frank regulatory rollback.

$2 Oil futures ticked up to $52.57; energy continued gains in some of the bigger names. Volatility is picking up with U.S. oil rig counts increasing and uncertainty about OPEC‘s response. I remain tentatively bullish on energy; find quality buys in this space.

$3 Generally markets did not move much, continuing recent trends. This sort of lateral trading typically is a sign that money is changing hands from “dumb” to “smart.” If this is the case, the next major move up or down will likely be a prevailing trend. Adjust your portfolios as you see fit.


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