I really, really hope all of you read my report on Artificial Intelligence published on November 2nd, committed it to memory, and acted on its recommendations (click here for ?The Great Artificial Intelligence Stock Play You?ve Never Heard Of?).

For at the very end, it strongly recommended the shares of processor manufacturer Nvidia (NVDA), which occupies the nexus of the entire movement towards machine learning.

On Friday, Nvidia reported some of the most amazing earnings of the year, with the stock delivering a massive one day gain.

And Nvidia shares did this on a day when the entire rest of technology was taken out to the woodshed and beaten senseless.
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Revenue leapt 54% to just over $2 billion, the first time Nvidia has posted a $2 billion quarter.

Its gross margin set a record at 59%, with a record 63% increase in gaming-derived revenue.

Nvidia?s dominance of the high-end GPU market is allowing it to soak up all of the spending that would normally have been at least somewhat split between itself and AMD.

Gaming was the big revenue booster for Nvidia.

Data center revenue grew by 59% as well, though this was much smaller in absolute terms ($230 million in data center sales versus over $1 billion in gaming revenue).

Jen-Hsun Huang, the CEO of Nvidia, noted that he saw strong growth in AI, though he opted not to break those figures out at this time.

Nvidia?s automotive program is also going well, with $127 million in revenue (a 61% increase year-on-year) and a 7% increase sequentially.

What Jen-Hsun talked about in the conference call is how Nvidia wants to build a computing platform that stretches from desktop GPUs, to cloud solutions like GRID, to automotive computing and self-driving cars.

It?s not that the rhetoric is different, but rather the fact that Nvidia is well on its way to accomplishing it.

These blew away even my own, wildly optimistic predictions.

Sales of Nvidia?s flagship product, the passively cooled 16GB Tesla P100 GPU, is being ravenously consumed by data centers around the country, and should grow by 95% during 2016, and another 50% in 2017.

Hold one of these dense, wicked fast processors in your hand and you possess nothing less than the future of western civilization.

Over the long term, the picture looks even better. It should continue with annual earnings growth of 20%-30% a year for the foreseeable future.

At a minimum, the shares have at least another double in them, and perhaps another double after that as well.

To learn more about Nvidia, please visit their website at http://www.nvidia.com/content/global/global.php .

Having said all that, I recommended to my concierge clients that they take profits on (NVDA) for the short term.

As much as I like the stock long term, in view of the presidential election result, it is clearly in the wrong sector at the wrong time.

Portfolio managers have been raiding their technology holdings since Wednesday, using them as an ATM, to pay for the newly discovered opportunities in financials, health care, construction, and industrials.

So better to get out of the way, and get back in when the sector has a tailwind, and not a gale force headwind, as it does now.

For those of you who did the trade, well done!

Talk about a game changer, a disruption of the status quo of the first order.

With the election of Donald Trump as president of the United States, and the retaining of the House of Representatives and the Senate by the Republican Party, we are looking at nothing less than a new world order.

After staying awake for the past 48 hours, speaking to seasoned money managers, strategists, and even senior economic advisors to the new president, I think I have a sense of the immediate trading opportunities that have been placed before us, as well as the long-term impacts.

What we are looking at are permutations of permutations of permutations.

Call it a trader?s dream come true, and it is heralding the greatest sector rotation of all time.

Donald Trump?s campaign was so far off the grid that it couldn?t be measured by traditional tools used by Democrats, Republicans, or even Trump himself.

There is no way Google (GOOG) was going to be able to effectively analyze a demographic that doesn?t know how to use a computer or use electricity. And no one was more surprised than Trump.

While Hillary Clinton won the popular vote, a highly vocal minority turned out to be large enough to win 278 Electoral Votes, sufficient for a Trump win.

All it took was a swing of 60,000 votes that came out of nowhere in rural Pennsylvania. The butterfly flaps its wings.

We trade the market we have, not the one we want. So let's get on with the important business of making money.

We got the 1,000 point sell off I predicted for the Dow Average. Who knew we would make a round trip? in hours.

Did you like the effect Ben Bernanke?s quantitative easing (QE) 1,2,3, and 4 had on your asset prices? Donald Trump just handed you QE 5 in the form of his proposed $1 trillion infrastructure budget.

Dumping this amount of cash on the economy will raise GDP growth for the short term, but also invite an earlier return of inflation and higher interest rates.

For years, analysts searched the horizon for causes of the next recession and found none. Now we have an obvious one, a US growth spurt that sparks inflation and leads to another Fed induced series of interest rate spikes. This could be a 3-4 year time horizon.

The bond markets are telling us as much, with ten year Treasury bond yields (TNX) rocketing an eye popping 17 basis points today, smashing through 2.02%.

What this brings us is a higher high in stock prices, followed by another crash a few years down the road. This is simply the boom and bust cycle that has been a hallmark of capitalism since time immemorial.

I?ll start with a clear list of winners and losers from a Trump administration.

WINNERS

Banks
Health Care
Big Oil
US Dollar
Infrastructure
Commodities
Gold
Domestic Businesses
The Wealthy
Russian Ruble
The Midwest Rust Belt States

LOSERS

Alternative Energy
Solar
Gun makers
Bonds
Utilities
REITS
Emerging Markets
Technology
Large Multinationals
The Poor
The Euro and Yen
The Mexican Peso
The Coasts

Here is the interesting thing for stock traders:

The sectors benefiting from the New Order have been in long-term secular bear markets. The losers have been in bull markets and are just coming off of all time highs.

So there are a series of sector rotations going on here which, if you get them right, could deliver out performance for years to come.

Let me spell it out for you. Buy domestic plays like commodities (FCX), infrastructure, construction (CAT), steel (X), banks (BAC), energy (XOM), and health care (XLV).

Sell international plays such as technology (AAPL), semiconductors (QCOM), large multinationals (AMZN), emerging markets (EEM) (EWW), yield plays, utilities, telecommunications (T), REITs (SPG), solar (FSLR), and other alternative energy stocks (SCTY).

I?ll make a few quick comments on each asset class.

Banks will benefit from steeply rising interest rates, the repeal of Dodd-Frank, and the end of the Volker Rule limiting risk taking. So the starting gun has been fired for the next financial crisis years off.

Health care will prosper from the end of Obama Care and the freedom to raise prices at will. Narrow monopolies will persist, and price gouging will grow.

The energy industry will face a double-edged sword. Big oil will love the rollback of environmental regulation.

On the other hand, a trade war with China will slow growth there, the world?s largest new consumer of energy, keeping oil prices lower for longer.

With a big infrastructure spend on the way, commodities, steel, and construction are all obvious plays.

Big tax cuts will favor companies with large domestic businesses and income, but not so much for those with large international trade.

Of course, the big winners are the One Percent, who will see their fabulous tax breaks preserved, if not expanded, especially the golden ?net operating loss carry forward? that Trump has mined so successfully.

Concerning the losers, now that the denial of global warming is official government policy, you can pretty much kiss solar energy goodbye.

The various tax incentives for investment there will soon be a distant memory. Notice that Tesla (TSLA) shares were down $10 today during a massively strong market.

Tougher trade deals and the tearing up of international treaties come at the expense of every emerging stock market.

Bonds are now in a 20-year bear market, but then we already knew that. That?s why I have been selling every rally in the Treasury bond market (TLT) for the past three months.

What?s on the table now is a prolonged move that could take yields up to 6% in coming years.

Adding a turbocharger will be the $10 trillion in new government debt Trump?s combination of tax cuts and spending hikes will bring. Remember, Trump is a "debt guy" big time.

Throw in a new war with Iran, or anyone else, and you can double that figure, taking our total national debt up to $40 trillion. Recall that Trump said on many occasions that ?We?ll bomb the s? out of them.? We?ll find out how real that sentiment is.

Oh, and an abrogation of the Iran nuclear deal gives them an operational weapon within a year. Stick that in your pipe and smoke it. Hope you don?t have any draft age sons.

Gold (GLD) will sniff out the coming inflation sooner rather than later, and resume its new bull trend. Did you notice the $50 knee jerk move last night? That?s what that was all about.

Of course, the US dollar will love all this, as it will become the preeminent high-yielding currency for the next several years. Woe to the Euro (FXE), the Japanese yen (FXY), and the Australian dollar (FXA).

Fortunately, I saw this one coming, and went into the election short the euro, which provided a nice hedge for my equity plays.

Real estate, both residential (LEN) and commercial, will have a spurt in the short term, as buyers rush to beat rising home mortgage rates.

However, we know that this always ends in a bubble and a crash, probably within three years.

It?s that capitalism thing again.

I was looking forward to a quiet and easy retirement in the years ahead. It looks like that is just not in the cards for me.

Here?s the New World Order