MagicDiligence
Magic Recipe 0.68%
Deep Value 1.28%
Star List 0.99%
S&P 0.07%
Today's Performance (see long-term performance)

Magic Recipe Movers - The Trump Effect

What a week for the Magic Recipe Spell!

It was a remarkable week for the markets in any case, with the S&P 500 rising 3.8%. It was quite the busy week, with the tail end of Q3 earnings calls and, of course, the historic and unexpected election of Donald Trump as the next president, which initially sent the markets into a sell-off but ended up being quite a net positive by the end of the week.

That was certainly the case for our Magic Recipe spell at large, with no fewer than 9 entries (nearly 20% of the screen!) rising 10% or more, and only one falling more than 10%.

There were definitely some themes the market picked up around the Trump election. For one, biotech companies saw sharp gains, as the market had been factoring in Hillary Clinton's threats of price controls, and part of Trump's 100 Day platform is faster approval of drugs in review. This explains some of the gains, including rises from Five Prime, Akorn, and United Therapeutics.

Another theme we've seen is a marked rebound in oil, gas, and coal exploration stocks. This really affected just one of the Magic Recipe stocks profoundly, with Greenbrier (a railcar play somewhat levered to coal) rising 15%.

Smith & Wesson was the only 10%+ decliner this week due to Trump, down 22%. The gun makers have seen an odd counter-trend, with the stocks soaring when the threat of gun control measures is highest (after Obama election in 2008, and then after Sandy Hook in 2012), and declining when the threat of gun control abates. The Trump election certainly is a boon to the anti-gun control lobby, and the gun stocks have sunk in response.

The largest gainer in our screen, Insys, jumped 27.5% after voters around the country approved multiple marijuana legalization measures on election night.

Here is the full roundup. To see the changes in the 3 subscriber spells for the past week, see this article.

Magic Recipe

Tickers dropping out:

Best Buy Co., Inc. (BBY)
Biogen Inc. (BIIB)
Liberty Broadband Corp. Class A (LBRDA)
Herman Miller, Inc. (MLHR)
Sturm, Ruger & Company, Inc. (RGR)
West Corporation (WSTC)

Tickers entering:

Buckle, Inc. (BKE)
DaVita HealthCare Partners Inc. (DVA)
Globus Medical, Inc. Class A (GMED)
Insys Therapeutics, Inc. (INSY)
Monster Beverage Corporation (MNST)
Western Union Company (WU)

10% Movers:

Insys Therapeutics, Inc. (INSY) 27.50%
TEGNA, Inc. (TGNA) 17.87%
Robert Half International Inc. (RHI) 15.82%
Buckle, Inc. (BKE) 15.48%
Five Prime Therapeutics, Inc. (FPRX) 15.08%
Greenbrier Companies, Inc. (GBX) 14.98%
Akorn, Inc. (AKRX) 12.70%
United Therapeutics Corporation (UTHR) 11.27%
Deluxe Corporation (DLX) 11.19%
Smith & Wesson Holding Corporation (SWHC) -22.03%
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