As predicted, the election of a new president alone won’t fix the problems of the economy (yes, I am an amazing fortune teller, I know); however, with the way the market reacted yesterday, it is pretty evident that investors want change quickly and they want it now.
As corny as it sounds, the honeymoon is over. We have worked our way up to the election and celebrated the the new body in office. Whether we must wait till January 20th, is yet to be seen.
Until then, the markets are going to be mediocre at best. Keep a close eye of what went up on days when the markets go down and watch what stocks move significantly during the mini-rallies we will most likely see sprinkled in.
If we can catch the patterns, then hopefully we can ride the wave until a new economic plan has been structured. If that is even worthwhile. In the coming months, we will hear lot of news dealing with the transition to the White House, and, of course, traders will react to it, but which way nobody knows.