Volatility "Can Be Beneficial": Trading The Election Results
Submitted by QTR's Fringe Finance
Listening to subscriber feedback, I wanted to add a little more market-focused content and, like all of my content, wanted to do it from someone I know, trust and have a track record with.
Which is why I’m stoked that my friends over at Sang Lucci Trading and The Steamroom, who I have known now for more than 10 years and have considered one of the best in the active trading business, are contributing to Fringe Finance on a weekly basis.
I’ve always liked Lucci, Wall St. Jesus and the crew at The Steamroom because they are honest and upfront about losses when they get their ass kicked (look for a ton of videos like this out there) and don’t try to pitch themselves as more than they are: a group of guys with a little experience trying to find an edge and do their best.
I find their analysis sharp and worth considering, so I’ll be happy to bring it to you on weekends usually heading into a new market week each week.
As a paid QTR subscriber you get access to these writeups which are normally reserved for their paying members for nothing extra.
As usual, my disclaimer below applies as does Lucci’s full disclaimer, which can be read here, which all boils down to one key point: you’re on your own, this is not trading advice, only the opinions and banter of the authors, and always consult a personal financial advisor before making any financial decisions. Options are extraordinarily risky and carry with them the potential for massive losses.
With that said, let’s get on with this week’s take from some of Lucci’s team.
WALL ST. JESUS
In the past few weeks, we’ve witnessed a market with a mixture of signals, fueled by election buzz, a heated earnings season, and high levels of volatility. For those of us closely monitoring these trends, it’s clear we’re in a period of recalibration. The question on everyone’s mind: where do we go from here? Election outcomes historically inject a unique brand of volatility.
Funds and individual investors alike are often forced into reactionary positioning, especially with the heightened media coverage and speculative sentiment that follows. They braced for the unknown by ramping up hedges and protections leading up to election night. With that event now behind us, markets are showing a short-term bullish sentiment as they quickly pressed us to all-time highs, even as the broader picture remains murky.
Post-election, we’ve seen a short-term surge across several sectors. The market remains cautiously optimistic, but we’re also nearing a point where things feel overextended. As short-term sentiment peaks, the potential for a “sloppier,” more digestible uptrend increases...(READ THIS FULL NOTE HERE).