What Happened? And What's Next?

November 9, 2016 6:34AM CST

In your wildest imagination did you ever think you would be uttering these two sentences within a week: The Cubs won the World Series. Donald Trump is now the President-Elect of the United States. Pinch me I am dreaming.  Last night when it looked as if Trump was on his way to winning the election, the Dow and the S&P took a nose dive. Why? Because the market does not like change any more than it likes uncertainty. The pollsters were publishing pre-election predictions that had Hilary breaking out to a comfortable upside. Based on that, the markets closed on a positive note yesterday, primed for a rally. That fell in line with what history told us…the market rallies when the democrats win the election. Then the surprise, the shock, the electoral votes shifted to the Trump side…the Dow fell 800 points, the S&P 107.00. But today is a new day. Things always look better in the light. Let’s go bargain hunting. Let’s look at this knee jerk reaction become a buying opportunity. The Dow Jones, at this writing is up 173 points, the S&P up 20.50. It is has been like Mr. Toad’s Wild Ride at Disneyland. Whether you got whipped and ended up with a loss, or got lucky and ended up on the right side coming or going, take a breath. Step aside. Wait to see if another shoe is going to drop. There will be many trading opportunities ahead as the world watches our new commander-in-chief’s every move. The wonderful part of trading the futures markets is you participate and benefit on both the way up and the way down. Would you like to know where we were when this all happened? Give a call!


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