We discussed the impact of the Trump Presidency on financial markets, based on expectations of tax cuts, deregulation, and other policies. Since then, the market has seen significant gains. However, these gains were followed by consolidation and profit-taking, causing the market to revert to its 20-day moving average (20-DMA). Notably, the market has started to recover, driven by buying pressure that could reverse the short-term MACD sell signal.
Looking ahead, the market seems poised for a pre and post-holiday trading bump into the end of the month. While mutual funds completing their annual distributions may cause a temporary dip in early December, we expect a bullish bias to continue into year-end as professionals adjust their portfolios for year-end reporting. Investors should consider minor pullbacks and consolidations as opportunities to add exposure to equities
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