November 9, 2016 @ 8:55 am

Today’s Markets

In Asia, Japan -5.4% to 16251. Hong Kong -2.2% to 22415. China -0.6% to 3128. India -1.2% to 27252.
In Europe, at midday, London -0.7%. Paris -1.6%. Frankfurt -1.5%.
Futures at 6:20, Dow -2%. S&P -2.2%. Nasdaq -2.6%. Crude flat at $45. Gold +2.6% to $1307.10.
Ten-year Treasury Yield +7 bps to 1.93%

Today’s Economic Calendar

7:00 MBA Mortgage Applications
10:00 Wholesale Trade
10:30 EIA Petroleum Inventories
1:00 PM Results of $23B, 10-Year Note Auction
9:00 PM Fed’s Williams: Economic Outlook

Market Summary

The S&P futures are trading at 2107 in morning trading.

Donald Trump has been elected the 45th president of the United States, beating his opponent Hillary Clinton as well as a raft of pre-election polls. “Now it’s time for America to bind the wounds of division,” he said in a victory speech, calling on all Americans to come together. The GOP also kept control of both the Senate and the House, giving the party greater freedom to implement its policy platform.

We saw a dramatic sell off overnight down almost 100 S&P points, but we have turned around and are down only around 30.  At Key2Options are foundation of how we trade is based on mathematics. Our algorithm does not take into account that there was an election yesterday. Our program has been short the S&P. We take the emotion out of trading by using math and once again, we were correct.

The S&P still looks very weak and could see weakness to 1905 on S&P over next few weeks.

Crude Oil futures we expect to trade down towards $40. 

We said yesterday that gold was a buy at 1270. Gold is trading at 1305 this morning.

Bonds look weak and should continue to drag stocks down.

Although the dollar sold off overnight, it rebounded and is slightly negative this morning. We are still bullish on the dollar.

We maintain our long VIX position.

Look for markets to be volitile for a weeks as we hear what policies Trump will be unveiling. At the end of the day, the markets look bad from a technical and fundemental level.

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