3. When the president is going to make a policy move, you can be sure that he will hint about it on Twitter first. 

President Trump’s main form of communication with the American people is Twitter. If there is something of consequence on his mind, this is where you will see the information. Anticipating a potential tweet can be the source of a great trade. The Syrian issue is a good example. It is not a big surprise that Trump is backing down from his aggressive comments yesterday. His typical style is to make aggressive statements and then to back off. We have seen it with everything from Korea to trade to potentially firing Mueller.

The president’s governing style is clearly seen in his tweets. He will make sensationalistic and controversial comments and then back off. The market will react initially and then reverse as conditions shift. The steel and aluminum tariffs were a great example of this. The market actually ended up higher after that controversy started than when it began.

Many market players don’t like the idea of government by Twitter but it is now an important part of trading. And it is going to continue to be an important part of trading for the rest of Trump’s term and we better have a strategy for dealing with it.

Stocks are bouncing nicely in the early going as Syria fears ease and the focus starts to turn to earnings. Big banks kick it off Friday and that is going to be the next big market driving event. That is, unless, the president decides to do more tweeting first.

Don’t forget to check on my investing advice on how to trade earnings using the PEPC method. Watch it Here.

 Related: Is Facebook Getting Replaced?