If you thought Comey coming out 2 days before the election to say nothing there in the 650,000 emails was surprising , Trump winning the election was an earthquake.
If you were long the market going into the election you most likely were ready to get out the Scotch when the market was off almost 1,000 pts last night. But this morning we are looking at only off 1.25% rather than the 4.5% at it lowest.
The market will weather this event fine. And in the medium term the market will figure out that the lifting of the stiffing regulations that was put on business here in the U.S. will be very positive for the markets. That alone is a serious tail wind that the markets will enjoy.
But the Country is in a precarious position right now. Polarization is at record levels among Americans but as evidenced by the voting last night not as large as our politicians would have us believe. So perhaps things will quiet down a bit here in the U.S. it will all depend on how the Republicans decide to lead as they will have control of the house, senate and presidency.
My opinion is that the U.S. will be fine. In addition the Geopolitical events should simmer down a bit while the world waits to see what the Foreign policy of the U.S. will look like. That alone will give the U.S. some breathing room from the collision course our Country was on in the Gulf and South China Seas.
But than there is always the chance that the Republicans will blow this opportunity. It will not be the first time. So I see the good and the bad of a Trump win and for the markets I view it as a positive if just for lifting of regulations and geopolitical events simmering down. Anything else as I view it, will be a bonus.
So today I will be looking for buying opportunities. I was really excited when the Dow was off almost 1000 last night as I was ready to jump in with both feet. But now one has to be selective with trades but the uncertainty of the elections are now behind us.
Break out trades are back on today along with perhaps a mean reversion trade if the market tanks further from here.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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