Why did the stock market rally after the election victory of President Trump? Do not expect to see increased earnings growth in 2017 and 2018. This market is now overvalued by all metrics! There are no sound fundamentals that are supporting these markets going higher so tread lightly.
My number one priority is preservation of capital. My number two priority is making huge profits with swing trades using ATP’s Momentum Reversal Method. I have been making anywhere from 5% to 74% in short term swing trades. The old days of buying and holding are over now due to the new structure of all the financial markets and program trading. For the entire month of January, I have been writing that the excessive optimism was a warning sign that this parabolic run was unsustainable!
On January 24th, 2017, the SPX peaked to a new high of 2300 and closed negatively on Monday, January 30th, 2017. This created the formation of an “island reversal”.