What an incredible post-election run higher in stocks - and we still don’t have a winner yet!
As I’ve said many times going into the election; focus on price, not politics.
Stocks are taking a breather into the weekend as we continue to watch the count to 270.
The big news this week is how much volatility came out of the market.
We saw the CBOE Market Volatility Index (VIX) drop from 38 to 25, which is a 34% drop in a few days.
This is a massive move but shows that investors having more confidence that more stimulus is on the horizon.
The U.S. dollar has been moving lower as the Federal Reserve kept its benchmark interest rate at zero percent.
This weakness is providing strength to the metals, which we can see gold hit August highs by the end of December.
We’ll continue to be nimble and I suspect Monday will give us plenty of opportunities for a great trade.
- Buy-To-Open the Wells Fargo Company (NYSE: WFC) Nov. 20, 2020, $24.50 call (WFC201120C00024500) up to $0.22 per contract or better, for the day.
Right now, we’re holding:
- Hostess Brands Inc. (NASDAQ: TWNK) Dec. 18, 2020, $15 call (TWNK201218C00015000)
- Buy-To-Open the Wells Fargo Company (NYSE: WFC) Nov. 20, 2020, $24.50 call (WFC201120C00024500)
Now we wait and let the market come to us.
Patience and persistence are key and I’ll be keeping you updated every step of the way.
I’m looking forward to answering your most pressing questions this Wednesday.
If you want yours included, send it to [email protected].
Have a great weekend, and I’ll have a new trade for you on Monday.
To your wealth, freedom, and options!