The Closing Look

Stock futures were down close to 900 points overnight after Donald Trump won the 2016 election. The massive sell-off only lasted 6 hours because the bulls showed up on Wednesday and sent stocks higher. That turned into the largest single day reversal for the market since the 2008 financial crisis.

Gary’s Thoughts: What happened to the crash? What happened to the 900 point futures drop? The scare tactics did not work just like it did not work with Brexit. Outcome…massive one way, one day trade in defense, industrials, insurance, financials, rails, biotech, drugs, steel, metals/mining and other economically sensitive areas. All these areas are perceived to be the beneficiaries of a lower tax, less regulation environment that looks to be coming out of a Trump administration…and quickly. We found dozens of high volume breakouts in these areas. THE QUESTION: Will they be one day wonder moves? Quite often, news events like this are just that. Our tactics…let them prove themselves. Taking off the fundamental hat…TECHNICALLY, they are simply big base breakouts on volume.