Post Election Rally - Pump to Dump

You know I love a good pattern.
And election season brings once that I love to play.

No matter who wins the presidential election, there is usually a post-election rally. It's a relief rally. Half of the population experiences euphoria and buys. Wall Street is greedy, so it digs in on the pump. In fact, it creates the pump.

Some people confuse this for confirmation that the market likes the new president. Wrong.

We saw that play out as soon as we had a winner. The market pumped. One side was shouting from the rooftops that this meant he was Wall Street's man. But, really, all Wall Street was doing was pumping so they could shortly go dumping.

And they did late last week and early this week. It was a classic rug pull. Normal profit-taking after a run-up.

We must always remember that Wall Street will find any excuse to create volatility. 

Never let political bias inform your trading or thesis. Look to predictable patterns instead or suffer the consequences of landing on your ass once the rug is pulled.

Next on deck is NVDA earnings to get that volatility Wall Street creates.