As expected, Trump won by landslide. It was never even close.
The public markets and the betting markets had it right.
The pollsters either got it wrong or they just lied to you. But neither of those is acceptable.
I never trusted those weirdos anyway, because why would I?
The way I learned it was that it's not about what they say, but about what they do. Money talks. And the money was right again.
In this case, the market even underestimated the wide margin of victory in last night's election. And the markets have adjusted accordingly.
Dow Futures are up another 1200 points this morning, after putting up a 500 spot during yesterday's session.
Bitcoin is up 5000 points to new all-time highs this morning
Tesla is up 12% and the Trump SPAC $DJT is up 30%.
So even through the betting markets got the President right, the Tradfi markets hadn't quite priced it all in yet, as we're seeing over the past 24 hours.
Here's the thing: None of us know what the market is going to do. That's the beauty of all this. We are working with incomplete information. And we know that going in. It's ok.
But there are market anomalies out there that do, in fact, exist.
One of them is that asset prices trend. And so after the past 24 hours, are asset prices continuing to move in the direction in which they were already moving?
The answer is Yes.
The other anomaly that I've been discussing over the past week is that investors are distracted by other things. They're too busy losing their minds over an election to recognize the giant elephant walking right past them.
The giant elephant this time was the put/call ratio hitting new 52-week highs on Monday.
These are buy signals, but I never see them show up when the stock market is making new all-time highs.
Perfect!
For investors, this is not about an election.
It's about the opportunities that the election presents for us.
Humans were getting distracted. They weren't mentally tough enough to overcome their biases. And that's where we can take advantage of their vulnerabilities to profit for ourselves.
We just got through what is traditionally the worst 6 months of the year. And all the major indexes were up double digits during that period.
So if stocks couldn't fall when they're supposed to fall, how do you think they'll do when they're actually supposed to rise in price?
The best 3 month period of the year just started this week. And boy is it off to a good start:
But not because I'm some election expert. But because we've just focused on the trends.
We had our LIVE Strategy Session this week right before Election Day on purpose. We wanted to make sure everyone knew how we wanted to be positioned before the big move.
