When Trump tweets, be ready

Just saying :stuck_out_tongue:

Probably my most favourite strat from last year, but if you see Trump tweet anything bad about the economy (such as most recently saying he can wait forever for a China deal), the stock prices drop a good amount for 1 or 2 days. This is usually followed by an opposite tweet from Trump (such as saying a China deal is very likely) sending stock prices in the opposite direction a day or two later (I wouldn’t be surprised if he’s dealing on the side lol).

Buy them when they are cheap and just wait for the short term recovery, usually brings an easy and healthy profit. Not always the case, as with anything but an interesting observation to say the least :slight_smile:

5 Likes

We need some bad news soon, there is not many fair priced companies out there :open_mouth:

3 Likes

The fact trump tweets are so effective is a rather depressing sign of just how gullible and easily mislead the typical retail investor can be. As for bad news, need not look further than sending him a leading question just to provoke a response, I am sure he will come up with something to send the market scrabbling once more.

I find the back and forth rather amusing to watch, another person to watch would be Boris Johnson. the UK equivalent. Not so much a tweeter but someone just as likely to make decisions that leave you scratching your head in confusion while prices react violently.

How people didn’t see his deadline coming is beyond me, he had been going on about the deadline for so long it should have been understood he would pass legislation despite it not being needed, just to act as following through on his word. It made a great day for me to sell off some stocks that gained 15% overnight and became too overvalued for my tastes and left me with free cash to invest on a stock that plummeted about 7% after releasing a poor performance report.

1 Like

Ye it is depressing and illegal too if he is dealing on the side.

But it makes sense for the big investors to be scared, he is the president of the USA after all. They would probably lose their jobs if they didn’t react to it.

All of this tweeting occurs and people like Warren Buffett keep on doing business as usual. It’s more so those at the bottom (retail) or those who are managing other people’s money and cannot convince them that there is nothing wrong. Nowhere is there a tier of people involved in the stock market that will lose their jobs just for ignoring or going against the president.

from what I have seen, most professional traders opt to watch the reaction and act based on that whether there are profits to be made, rather than the tweet itself.

Investing focused people will see all this action and will just treat it as something that occurs in the short term rather than the long term. Long-term investors will only care if the tweet causes share prices of solid companies to drop suddenly, as that’s a prime opportunity to buy more shares at a discount.

I doubt Trump is personally profiting from messing with the markets, but I wouldn’t put it past his family to do so. Trump just isn’t that kind of businessman, if he can be called such. Trump already has his interests in the fact he continued to run his company despite taking office, something they expected him to stop doing according to tradition.

All that matters is that it works and it is effective. So absolutely monitor his twitter account to see what happens next and perhaps you can catch the next shock wave early on. :crossed_fingers: :grin: :+1:

1 Like