stocks

Gap Up

It’s pretty simple.  The US market is about to gap up to start the year, and it will be right at short-term resistance if/as it does so.

S&P 500 Futures…

sp500

So the question is, do you chase this potential suck in or do you wait it out?  I choose Thing 2, as I am only short XLF (against several remaining longs) and also long Treasury bonds (which are about to get zonked).

I am at the moment, built to be balanced.  I’ll change that if the market instructs that Trump Mania part 2 is about to foment.  But the chart above does not inspire confidence in that outcome… yet.  If the inauguration brings about a new round of animal spirits, I plan to be a nimble trader from the bull side.  The S&P 500 target is after all, 2410.  But then I’d be prepared to get actively bearish within the next few months.

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