Just so happens, more risk pockets developed after this post was written earlier in the week for Fishing Club Members.
This was my pre-market Morning Thought note to members Friday morning:
Tax Reform won’t likely get voted on until Monday at the earliest so today is likely to be a quiet day with continued rotation.
Unless Mueller’s office has more details around Michael Flynn pleading guity to false statements…
Baahaahaa. Well you know what happened next. Volatility exploded around 10:30am when news broke that Flynn would testify against Trump. We had a few lotto chase hedges on in the LIVE Trading Room for the week expiring Friday, and one in particular performed especially well: DEC 1 $VXX $32 Calls bought for .50 returned 650%. Now, the VIX reversed a few hours later but our job was done and we were happy to have been positioned for yet another Vicious Rotation.
Tonight the Rotation is back but this time viciously higher with the tax reform plan looking very likely now and futures market indicating stocks will likely open higher tomorrow. With that, I wanted to dust off an earlier prediction as the market is approaching my 2017 Supremely Bullish Case price target of SPX $2672:
The Dow is now at it’s longest monthly win streak of 8 in a row – the longest in 22 years. With that, careful in this potentially final blow-off stage of the stock market rally.
And don’t forget to hedge!!!