President Signals Rethinking of the Trans-Pacific Partnership
If the President can manage to appease balking TPP member states, many of the agriculture stocks would likely benefit.
Negotiating the Trans-Pacific Partnership TPP, is on the table. That said, trade negotiators already have their hands full completing changes to the North American Free Trade Agreement.
Agriculture Stocks and TPP
Archer Daniels Midland (NYSE $ADM) weekly shows a potential breakout looming.
We are just beginning to analyze the industry groups that could be affected with upbeat TPP negotiations. We would suggest members do the same, as there are many stocks that look bullish in these sectors.
Meat producers like Hormel (HRL) are one industry group that exports meat products to China as well as TPP member states. The company reports the first week of May.
Price action is rising above VBP resistance as it builds the right side of a cup pattern. MACD is above its signal line.
As a side note, many investors would be surprised to see Intel as a candidate that would benefit from TPP negotiations as it has a new manufacturing facility in Vietnam.
More homework needs to be done as this is an area where we could see a lot of potential for patient and informed investors in the months ahead. More to come.
Heading into the Opening Bell, most of the attention will be on banks and earnings for the next couple of weeks. Start thinking about TPP in the interim.
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