11/29/2016

A bit of pullback


Markets reacted extremely positively to Trump election. As you can see it resulted in huge asset allocation back in to stocks and breadth jumped from negative to positive.

Rallies seldom go straight up. Once breadth becomes extremely positive there tends to be pullback or consolidation. We are at that stage,.

If the rally has further upside then the pullback/consolidation will be orderly and will be aggressively bought.

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