Hey Traders,
As I mentioned yesterday, the market doesn’t care who sits in the Oval Office as much as the media wants you to believe it does.
And today, we’re seeing that play out loud and clear.
Now, I know a lot of folks might be scratching their heads at the market’s reaction right now.
Heck, we saw the Dow shoot up over 1,300 points right at the open! That’s not something you see every day, and if you’re thinking, “Where the heck did all that money come from?” you’re not alone. I’m asking myself the same thing.
So, what’s really going on here?
See, this isn’t a “Trump Trade” or a “Harris Trade” — or any other political trade — that the talking heads are trying to sell you. What we’re witnessing is a relief trade.
The market hates uncertainty.
It always has and it always will.
And with this election finally in the rear view mirror, we’ve got a little less of it hanging over our heads.
Like I said yesterday, the market doesn’t hang its hat on who’s president — it runs on its own terms.
But it does hate when there’s too much unknown. With the election settled, the market can get back to focusing on what actually matters: trends, earnings, and fundamentals.
Now, does this mean the market will stay up here? Not necessarily.
I’m a little surprised at how strong it’s held so far. When you’ve got hundred-billion-dollar companies jumping 10% in a single day, you’ve got to wonder, “Where did all that money just come from?”
And here’s the kicker: I’m not convinced that this massive jump has much of a foundation yet. Relief rallies like this can burn bright and fast — but they can also fizzle out just as quickly.
So, what’s the play here?
My Take
If you’re looking to jump in, be smart about it.
This is a great time to keep a close eye on stocks with solid fundamentals and real, consistent earnings — companies that can back up their price with actual results.
Look for the ones riding solid trends, but don’t chase the hype.
The market looks like it could be back on track, and we’ve got plenty of opportunities, but keep your head on your shoulders.
Trade well,
Jack Carter
P.S. I joined Nate Tucci, Geof Smith and two more market pros today to talk about the markets’ reaction and our top stocks to watch. If you missed it, you can catch the FREE, on-demand replay right here!
