The Trump rally isn’t over — stocks could soon ‘explode’ higher: Market strategist

Stocks have soared after the election of Donald Trump, but the real rally may just be getting started, according to macro strategist and trader Boris Schlossberg.

"If the [incoming] administration really seriously focuses on his economic agenda first and foremost, and it looks like it will, then you have this incredible potential of deregulation, possible tax cuts and fiscal policy," Schlossberg, of BK Asset Management, said Wednesday on CNBC's "Trading Nation."

And since the economy has already been improving, "to jump-start the economy into a higher gear from this level provides, I think, a tremendous amount of fuel for much higher-than-expected earnings and much better-than-expected performance in 2017," he said.

Even though valuations have already risen, optimism about Trump's economic agenda means that over the first 100 days of his presidency, "the market could explode much higher on sentiment alone," Schlossberg wrote to CNBC.

On the other hand, Oppenheimer technical analyst Ari Wald points out that bullish sentiment has already surged, which "suggests equities could pause here, or that more attractive opportunities to buy may develop."

Yet more broadly, "the longer-term picture is still bullish," Wald said Wednesday on CNBC's "Power Lunch." "Our current indicators are supportive of an extension of this advance that could take the [S&P 500] to 2,500 this year."

That would represent a 10 percent rise for the large-cap index.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's Closing Bell (M-F, 3PM-5PM ET). In addition, he contributes to CNBC and CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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