Three Days Of Insanity

Dow: +256.84…
Nasdaq: +57.58… S&P: +23.67…

After everything we have seen over the last several days i’m just happy my head is still attached to my shoulders. The market should have tanked Monday, then we had a Comey about face over the weekend and the shorts gt squeezed on Monday. On Tuesday, there was a positive bias to the market because it looked more and more like Hillary was going to win.

Last night though, Trump was winning big and the Dow futures dropped 750 points. Were it not for a wonderful speech by The Donald, whereby he promised cooperation and reaching out across he aisle, the market would probably have stayed down big and we would have had a fairly bloody open.

Although Hillary didn’t appear last night, I really do believe she made very strong concession speech this morning. It was well done, respectful and she asked her constituents to give Trump a fair chance. That’s all you can as for. So both sides I though gave great speeches and that shroud last about a day until they all start hating each other again. I wish it wasn’t so, but we all know the drill.

It was a great unifying speech and by the time I looked at the market this morning, not only did the overnight markets put in one of the greatest reversals in history, but it was green!!!!!

I wanted a bloody open if for no other reason you could have bought cheap, instead you had to chase, which I hate. Am I supposed to chase biotech stocks +25%?

So what now?

Well unless you put your entire 401K in IBB yesterday at the close, you are looking to make money here and you are trying to figure out what comes next. IBB was up almost 9% today which was the biggest move in the sector that I have ever seen. Massive short covering.

Bio will probably be my emphasis throughout the remainder of the year with some other attractive setups thrown in.

Today technology did absolutely nothing, as a matter of fact AAPL GOOGL and AMZN were all down….go figure.

The strength went to steel, coal, materials, metals and banks etc.… Infrastructure type stuff. The Trumpster loves him some infrastructure, at least he says he does, so there should be some continuation there. Have you seen copper latley? (JJC)

The dollar and the 10 year note (yield) both exploded higher and the latter is now yielding 2.07% That happened fast didn’t it?

We have about six weeks remaining this year and we all know about the performance challenges of hedge funds and mutual funds thus far, so its not out of the question that we could see a massive melt up into year end as everyone chases performance and in true herd mentality lifts this market to new highs. I’d almost be surprised if we didn’t at this point.

I added 2 longs today

TWLO has been massacred and has a decent falling wedge pattern. Once back over 34 it should rip higher.