Now we finally have the election in front of us and if yesterday's action is an indication the next few days should be fun. One day does not make a trend, but we do have a positive development. Volume was light across the board despite big price gains. Feels like short covering, but then again we have seen rallies begin just like this. Our expectation is certainly to experience a bit more chop from this market until we know who is President. As long as we can trade it is our concern. We’ll leave the political guessing game to those who truly enjoy bloviating on the topic. A good start to the week and while there are some potentially good signs we just are not there yet. More to come.

A positive was the breakout in the Dow Jones Transportation Average. Is the economy about to take off here? It is anyone’s guess, but certainly a group of traders put some money to work in some transportation names. FDX and UPS are just a few who are in the Transportation average. Here is a chart of the index:

It is clear to us this industry wants to move higher and there were plenty of stocks within the group pushing higher. We were discussing potential names in our chat room this afternoon. Our platinum members have access to the chat room.

After Friday’s melt-down the VIX jumped to a multi-month high. The fear index had been pushing higher as we were working towards the election. Every ETF long the VIX was hit hard pushing each one back to near their all-time lows. Here is a chart of the VIX:

We are not out of the clear just yet as the election is not over. We hope you enjoy the volatility over the next couple of days. Best of luck with your trading.