*** ALL THINGS MONEY >>>> ATM ***

[EZ2]

This gold play's breakout looks enticing as Trump swats at the dollar
MARKETWATCH 8:11 AM ET 1/18/2017
Symbol Last Price Change
GDX 23.36 0 (0%)
KBE 42.38down 0 (0%)
QUOTES AS OF 08:00:00 PM ET 01/17/2017
Critical information for the U.S. trading day

The Dow today just might fall for a fourth straight session, as chatter about a Trump rally is repealed and replaced with talk about Trump volatility.

Yet so many people have been touting a sell-the-inauguration approach (http://www.marketwatch.com/story/sell-the- inauguration-speculation-is-stock-market-nonsense-says-wall-street-bull-2017-01-13) and unloading already, that it no longer looks like such a great strategy, says Jani Ziedins over at CrackedMarket.

"The more people expect something, the less likely it is to happen," Ziedins writes (https://cracked.market/2017/01/ sell-the-news-not-so-fast/). The slide in stocks could subside, and then the rally could resume after Friday's swearing- in ceremony, he says.

So what would be a smart and surprising move? Investors ought to hitch their wagons to a sector whose "short-term breakout looks enticing, especially as few people seemed to be looking for it."

That's our call of the day, and it comes from Barron's technical analyst Michael Kahn. The gold mining sector is the slice of the market that he's sounding bullish about. He says it's a short-term call, but a long-term bull run can't be ruled out.

There are several reasons to like the biggest gold miners ETF (GDX) , based on its daily and weekly charts, Kahn writes in his latest "Getting Technical" column (http://www.barrons.com/articles/gold-stocks-look-good-1484688493). On his daily chart shown below, the short-term trendline breakout is the No. 1 reason to get bullish, he says.

There is "a good deal of room for the ETF to rally from its current level near $23.35," Kahn adds. The level that gold-stock bulls need to target is around $31.50, where the VanEck Vectors Gold Miners ETF(GDX) peaked in mid-2016.

The Barron's technician is not alone in talking up gold miners. One chart freak (https://twitter.com/chart_freak/ status/821373297032101889) says GDX looks like a winner at this point, after failures last year. And the precious metal itself has attracted upbeat takes here (http://www.marketwatch.com/story/dont-look-now-gold-is-crushing-the-stock- market-in-2017-2017-01-12) and there (http://www.marketwatch.com/story/grab-some-gold-because-the-fed-cant-figure-out- trump-the-metals-fans-say-2017-01-05), with Greenlight Capital'sDavid Einhorn (https://www.scribd.com/document/ 336810961/Greenlight-Letter-Q4-2016) among those backing gold (GLD) as a way to play the Trump presidency.

Key market gauges

Futures for the Dow , S&P 500 and Nasdaq-100 are slightly higher. That's after the Dow , S&P (http:// www.marketwatch.com/story/dow-on-pace-to-slip-after-4-record-closing-highs-in-a-row-2016-11-16)and Nasdaq Composite sagged yesterday (http://www.marketwatch.com/story/wall-street-stocks-set-for-a-lower-open-with-investors-rattled-by- trump-brexit-2017-01-17), with some pinning the slump on President-elect Donald Trump waving adios to a longstanding strong dollar policy (http://www.marketwatch.com/story/trump-is-waving-adios-to-the-longstanding-strong-dollar-policy- 2017-01-17).

The buck is recovering somewhat from yesterday's slump, while oil is giving back some gains from the prior day. See the Market Snapshot column (http://www.marketwatch.com/story/bruised-us-stocks-look-for-guidance-from-goldman-results- yellen-speech-2017-01-18)for the latest action.

The chart

As traders talk about "Trump trades" unraveling, IG's Chris Weston (https://twitter.com/ChrisWeston_IG/status/ 821446447883165696) offers a chart on bank stocks, along with a bearish take. The SPDR S&P Bank ETF(KBE) looks like a good short opportunity, the chief market strategist says.

The banking play looks set to go lower, and "short positions in U.S. markets are preferred, although I am not expecting a strong move lower," Weston writes.

The quote

"I don't like Tweeting." -- President-elect Trump has the world watching his Twitter stream, but he told the "Fox & Friends" program that he doesn't like using (http://www.marketwatch.com/story/donald-trump-i-dont-like-tweeting-but- have-no-plans-to-quit-2017-01-18) the microblogging service.

Read: Most Americans think Trump's tweets are a bad idea, poll finds (http://www.marketwatch.com/story/most-americans- think-trumps-tweets-are-a-bad-idea-poll-2017-01-18)

And see:Every Trump tweet activates thousands of computer algorithms (http://www.marketwatch.com/story/every-trump- tweet-activates-thousands-of-computer-algorithms-2017-01-12)

The stat

(

FACT: In commuting the sentences of 209 people today, @POTUS has now granted more commutations than any president in U.S. history. pic.twitter.com/QoQ1i81Y4N

— White House Archived (@ObamaWhiteHouse) January 17, 2017

)

Pardon me, but are you aware that President Obama has shown more clemency than any other U.S. president? He has granted 1,385 commutations, including a controversial one yesterday for Chelsea Manning (http://www.marketwatch.com/ story/obama-commutes-chelsea-mannings-sentence-pardons-james-cartwright-2017-01-17).

The buzz

Chuck E. Cheese is being prepped for an IPO (http://www.marketwatch.com/story/chuck-e-cheese-prepped-for-ipo-report- 2017-01-17) that would value the restaurant chain at more than $1 billion.

Goldman Sachs (GS) and Citigroup (C) are on the earnings docket ahead of the open, and Netflix (NFLX) is due to report after the close.

See:What to expect from Netflix's earnings (http://www.marketwatch.com/story/netflix-earnings-what-to-expect-from-the- streaming-giant-2017-01-12)

Former President George H.W. Bush, 92, has been hospitalized (http://www.marketwatch.com/story/former-president- george-hw-bush-admitted-to-hospital-report-2017-01-18).

The inauguration is in two days, and here's a handy chart for what could happen next:

(

Trump's first 100 days, tabled by Citi pic.twitter.com/cpbie6Hbi1

— David Keohane (@DavidKeo) January 18, 2017

)

The economy

Two economic reports are due before the open, covering consumer prices and industrial production. A report on the housing market is slated to hit after the open, then the Fed's Beige Book is on tap for the afternoon.

Fed chief Janet Yellen is expected to speak at 3 p.m. Eastern Time, and the Minneapolis Fed's Neel Kashkari is scheduled to talk at 11 a.m. Eastern.

Check out:

Random reads

45% of millennials (https://www.bloomberg.com/news/articles/2017-01-17/these-millennials-are-doing-just-fine-at- saving) would tap savings for an emergency expense vs. 39% of boomers.

No, Mr. President-elect, the dollar is not too strong (http://www.realclearmarkets.com/articles/2017/01/18/no_mr_ president-elect_the_dollar_is_not_too_strong_102506.html).

A protester allegedly tried setting himself on fire (http://www.nydailynews.com/news/national/protester-setting-fire- trump-hotel-article-1.2949058) outside Trump's D.C. hotel.

Do people prefer self-driving cars that act for the greater good? Not exactly (http://www.mynbc5.com/article/for- driverless-cars-a-moral-dilemma-who-lives-or-dies/8609719)

New pictograms (http://www.bbc.co.uk/news/world-asia-38660860) aim to give "peace of mind" to users of Japan's high- tech toilets.

The priciest U.S. home is the White House, valued at nearly $400 million (http://www.marketwatch.com/story/heres-how- much-the-white-house-is-worth-2017-01-18).

All Chambers is saying is give Trump a chance:

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01-18-170811ET
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