The Week That Is

In his first week in office, President Donald Trump addressed many of the issues needed to boost the economic revitalization currently taking place. For the most part, the corporate community, as well as investors and traders, saw this as a positive move forward. The net result was the US equities markets trading to a new historical high last week.

According to CNN, President Trump has signed five executive orders and 10 memos since taking office on January 20. Within hours of taking the oath of office, President Trump issued his first Executive order and has maintained a fast and furious pace as he implements his new policies. These policies for the most part were interpreted as positive moves to increase our economic prosperity. Of course, that was the week that was.

However, by the end of the week, Trump began to implement new immigration policies. On Friday, President Trump signed an Executive order temporarily banning immigration from seven primarily Muslim based countries.

Dow Breaks Below 20,000 as Gold Prices Increase

The net result was US equities experiencing the largest selloff in 2017, taking the Dow Jones Industrial Average to a low of 19,870. The markets were able to slightly recover, closing off well over 100 points at roughly 19,960. The confusion and resurgence of uncertainty created by his actions on Friday has set ripple effects across the financial community. Safe haven assets reacted favorably, with gold gaining over six dollars on the day and spot gold closing at approximately $1195.

The Fed and Job's Data

This week will contain two major factors that could also dramatically influence market. Foremost will be the first FOMC meeting held in 2017. The second will be the release of jobs data from December 2016.

Inasmuch as we acknowledge that it is not business as usual in Washington, and that pace of this shakeup is rapid, we must realize the potential for increased uncertainty as President Trump continues his wide sweeping and transformational changes. More so, the uncertainty factor has increased exponentially due to his most recent policies regarding immigration. This increases the current divide that exists between American factions. That cannot have a positive effect on our economy.

Wishing you as always, good trading,