Top Weekend News Stories November 19 2017

The top news stories this weekend that could impact stocks on the GuerillaStockTrading watch list.
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Oligopolies and Monopolies

The Trump Administration is following the playbook of Reaganomics. As part of its Reaganomics program, the Reagan Administration cut back sharply on the regulation of everything from monopoly and oligopoly to pollution and product safety, important elements that likewise effect the aggregate supply curve.
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Top Weekend News Stories November 11 – 12, 2017

The top news stories this weekend from stocks on the GuerillaStockTrading watch list.
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Google Beats On Earnings, Revenue, Gets Price Target Hike

Alphabet Inc aka Google beat on earnings and revenue. For the quarter, the company reported EPS of $9.57 which crushed consensus estimates of $8.43. Revenue also beat coming in at $22.27 billion versus analysts estimates of $21.94 billion.
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US Set To Take Tech Jobs Back From EU

The European Union has launched a tax assault against tech giants Amazon, Apple, Facebook, Google, and Qualcomm.

The EU’s actions are being supported by Germany and France but opposed of by Ireland.
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Establishment Media Trying To Push The Stock Market Down

MarketWatch is REALLY trying to push the stock market down and Google has given them a prominent position in their search engine results to do just that. Check out what the search “stock market news” outputs from Google search:

Whatever happened to the “fake news” filter Google was going to start using?

Google features this fake news story from MarketWatch at the top of their search results:

You can read the entire fake news story about the Hindenburg Omen here.

The Hidenburg Omen is one of the most inaccurate market timing tools to ever exist. Its track record of false signals should delegate it to your trash bin. But even if you ignore this fact and actually want to use the Hidenburg Omen indicator, it’s not giving a signal right now.

This is a fake news story because the Hidenburg Omen is NOT back. The company that owns the WSJ and MarketWatch is trying to manipulate you into thinking we have a Hidenburg Omen signal because they know you’re too stupid to fact check them IMO.

The Hidenburg Omen does not give a signal until the $NYLOW:$NYTOT crosses above the red line while the $NYHGH:$NYTOT is above its red line at the same time. As you can see, we are no where near a Hidenburg Omen signal.

Establish Mainstream Media Push To Destroy Trump

A picture is starting to emerge that the big gambit of the Establishment mainstream media is to push down the stock market and attack President Trump at the same time.

What those who control the content on MarketWatch and the WSJ fail to understand is that they only discredit themselves the more they try and manipulate public perception.

Google Has Hopelessly Lost Its Way

Google rose to power off the backs of hard working entrepreneurs seeking to advertise over the Internet to compete with the rich and powerful that have controlled TV and newspapers for generations.

The Internet has always been, and will always be, a way for ordinary people to communicate ideas with other ordinary people without the interference of rich and powerful corporations acting as the medium of exchange.

Years ago, Google ditched the entrepreneurs that helped it rise to power and instead has cast its lot with the Establishment mainstream media.

Google Has Fully Transitioned Into a News Aggregation Service For the Establishment Mainstream Media

As Google search updates continue to be released every couple of months, one thing is clear, Google continues to make it harder and harder for ordinary people with alternative views to get web traffic from their search engine.

As Stock Traders We Have To See the News Behind the News

The Establishment mainstream media propaganda blasted across the Internet by Google is detrimental to your stock trading efforts. These publications will publish fake news reports like the Hidenberg Omen story above. They have an alternative agenda. Sure they sprinkle in a few stories here and there that may help you make money off a trade but their overall agenda is to destroy Trump and you and I are just collateral damage. Don’t be collateral damage from the false narratives in the mainstream media news. You have to question EVERYTHING and take nothing at face value because your trading profits depend on it.

Tech Stocks To Buy, So Juicy After Recent Pullback

What are the best tech stocks to buy right now? I can’t find a technology stock that doesn’t look like a good buy right now. Technology stocks are reverting to the mean because they got a little too hot last month.

Tech Stocks To Buy

Large players are not stepping in yet and the Twiggs Money Flow is still falling; however, I think STM shows a decent setup pattern especially when you consider that institutional investors have increased their long positions by a whopping 71% over the last 3 months. Prices have been consolidating lately and the volatility has been reduced. There is a very little resistance above the current price. There is a support zone below the current price at 14.3, a stop order could be placed below this zone.

FB presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 148.42, a stop order could be placed below this zone.

MSFT does present a decent setup opportunity and is one of the better tech stocks to buy. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 68.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 68.16, a stop order could be placed below this zone.

AMZN does present a decent setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 985.85. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 953.65, a stop order could be placed below this zone.

GOOG looks a little too much like a falling knife right and so I’m not seeing a good setup at the moment but love the pullback. Price movement has been a little bit too volatile to find a nice entry and exit point. It is better to wait for a consolidation first before taking an entry.

NFLX looks like a falling knife so I don’t see a good entry right now. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

When you are looking at which tech stocks to buy one thing is clear, the latest pullback has presented some juicy opportunities.

S&P 500 Measures Concentration of Wealth More than Economic Growth

Monopolies are sucking up everything in their vortex as the concentration of wealth continues. Examples of monopolies are Amazon, Google, Apple, and Facebook.

Amazon is destroying retail and it’s expanding into the food industry now. Amazon brings in automation technologies which will keep adding pressure on other low wage sectors. When Amazon announced the buyout of Whole Foods, we saw Amazon’s stock go up but everyone else in the grocery industry went down.

Amazon will layoff thousands of employees of Whole Foods and replace them with self-serve electronic cashiers. The move to layoff workers and automate has caused bubbles in higher education debt, automobile loans, consumer debt, and a new round of mortgage debt. Meanwhile, state and local governments remained strapped, and the ordinary services of everyday life are rapidly diminishing.

The trend of a few companies dominating everything at the expense of all others continues and it’s the driving force behind income inequality in the U.S.

As monopolies like Amazon continue to eliminate smaller businesses, wealth becomes more concentrated as it flows to corporate officers and shareholders.

The market cap of tech giants is already greater than the GDP of large U.S. cities. Google is bigger than Chicago and Amazon is bigger than Washington DC.

Facebook, Amazon, Apple, Microsoft and Google parent company Alphabet are the top five contributors to the S&P’s 500 gains this year. In other words, these monopolies are sucking investing dollars away from other companies thus the S&P 500 keeps rising even though the economy is slowing. In this scenario, the S&P 500 is more a gauge of the growing concentration of wealth than it is of the economy.

What The Trump Win Means For Multinational Corporations

I predict that a Trump win means down for the economy at first, then upward as the US consumer strengthens from domestic job growth.

The down first move in the economy will come from inefficiencies caused by forcing multinational corporations to bring domestic production facilities back to the US or face steep tariffs.

Several traders have emailed me asking what stocks are good to short or go long in a Trump Administration.

Here is how a Trump win is likely to impact industries negatively.

IoT Industry

Tesla is the big driver of autonomous vehicles. Tesla is shipping all new Model 3 cars with the hardware for full autonomy. These autonomous cars are also electric cars. Tesla’s new Model 3, after tax credits, was priced for under $30,000. The Trump Administration is likely to be unfriendly towards companies like Tesla that benefited under the Democrats crony capitalism. The Trump Administration will likely offer few proposals for combating climate change. Trump will likely not pursue “green policies,” which means the discontinuation of “green” tax credits like the kind Tesla benefits from. Without these generous tax credits, Tesla automobiles will be more expensive which will slow purchases and slow the spread of the self-driving car.

Industrial IoT trends have been towards automation and replacing human workers with machines and robots. Trump has promised to renegotiate trade deals to bring manufacturing jobs back to the US. If IoT trends are taking away US jobs, it’s a pretty good bet that a Trump administration will advocate against industrial machines and robots that replace human labor.

Payments Industry

Trump has threatened to cut off remittance send from the US to Mexico until Mexico pays for a border wall. Trump is considering forcing Mexico to pay for the wall by invoking the US Patriot Act to cut off portions of the flow of money between the US and Mexico until Mexico makes a one-time $5 billion to $10 billion payment for the wall. Mexico is the largest receive destination for US remittances, cashing an estimated $25 billion in 2015. Western Union recently doubled the size of its retail network in the country, and MoneyGram unveiled a product in partnership with Walmart to make it easier and less expensive to send money from the US to Mexico. Cutting off the flow of money from the US to Mexico, even temporarily, would negatively impact Western Union and MoneyGram.

A Trump Administration will focus on bringing manufacturing back to America, specifically targeting firms like Ford and Apple to build products in the US rather than in Mexico or China. To implement a plan of bringing manufacturing back to the US, a Trump Administration will need to use tariffs and issue tougher manufacturing restrictions. This will likely cause a major decrease in international business spending as more businesses are either unable to make transactions due to restrictions or unwilling to pay the extra fees.

Technology Industry

Net neutrality is the concept that all data transmitted over the internet should be treated equally. Trump has not released official statements about the topic of net neutrality, but he has expressed distaste for President Obama’s approach. A Trump Administration could push to change the FCC’s net neutrality rules which would result in different price points for various data types and enable service providers to throttle data delivery.

In a Trump Administration, technology companies will likely be forced to change encryption policies to provide backdoor access to the US government. Trump supported the court order calling for Apple to facilitate access to an encrypted iPhone used by the San Bernardino shooter and asked consumers to boycott the company until it complied. Civil liberties groups are likely to take the Trump Administration to court. Requiring companies to provide backdoor access to the US government would violate consumers’ trust and likely lead to a decline in users of these companies’ products at first. Over time, though, consumers will likely not care.

Policy changes by a Trump Administration would harm tech companies that manufacture overseas, like IBM and Apple. Apple’s iPhone is likely going to become much more expensive for US consumers.

Apple and Google make more of their revenues overseas than within the US. Higher tariffs and protectionist policies could make it more expensive for tech companies to move and sell their products around the world. The broader use of trade tariffs would likely spur more countries to invest in domestic technology sectors within their own countries and to reduce their reliance on US technology providers, which would further hurt US tech multinational corporations.

Large mergers between service providers and digital content companies could face greater scrutiny. Trump said that the $85 billion AT&T and Time Warner merger would not be approved by a Trump administration because “it’s too much concentration of power in the hands of too few.” A Trump Administration could lead to a decrease in M&A activity.

The technology sector has been granting more H-1B immigration visas to highly skilled workers with STEM backgrounds.

A Trump Administration will likely include fees that will make it more expensive for companies to hire foreign workers through the H-1B visa program. If such fees are enacted, it would likely drive up wages for highly skilled IT talent even further across the technology sector.

E-Commerce

Protectionist policies and tariffs will increase the cost of goods. Trump wants to tax US companies that choose to manufacture goods overseas. Such a policy would harm retail companies that manufacture their goods overseas. Most retail companies will raise their prices to offset these tax penalties and the added cost of building manufacturing plants in the US.

E-commerce companies are pushing to deliver products to consumers as fast as possible. Think Amazon, and it’s Amazon Prime membership with free two-day delivery as well as its drones for remote area deliveries. This fast delivery involves automation within distribution centers. A Trump Administration will likely move to protect American workers from being displaced by machines thus forcing e-commerce companies to invest in traditional forms of labor over cheaper and faster new ones.

While a Trump Administration will be great for the US economy long term IMO, short term, I think we get a pullback in the economy while corporations adjust to higher costs and lower sales.