Who would have thought Trump would win the presidency and the market would follow-through to the upside. Many pundits were calling for a market collapse if Trump would become President. We have been cautioning not to jump to conclusions about what this market may or may not do. Yesterday's move does not guarantee we will continue higher. For now, we have a confirmed uptrend and our market models are mainly neutral.
This has been a crazy few weeks and while we’d love to say it is over we will likely have to deal with a rate hike come December. The long end of the curve was decimated yesterday as rate hike odds remain in favor of another quarter point rise. Rate hikes are long overdue as the longer we hang near record low interest rates the more the investment picture becomes distorted. At this point, the mal-investment created by low interest rates is unknown. Not to mention those who live off a fixed income would receive somewhat of a boost. December 14th will come soon enough get prepared with Big Wave Trading.
We are on the hunt for solid signals and look forward to taking action on these signals.
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