Markets are very close to their all-time record highs

Highlights

• All the Noise

• December Hike

Please note: All data, figures & graphs are valid as of November 10th. All trading carries risk. Only risk capital you're prepared to lose.

Markets Overview

As we've seen in the chart above, the sell-off happened, it's been reversed, and now the markets are once again very close to their all-time record highs. In fact, the Dow Jones broke a new all-time high of 18,673 just this morning.

Along with that, the volatility is dying down as well. The VIX closed last night at a low of 14.38.

There's a lot of noise right now in the papers and on social media about what a Trump presidency is going to mean. Of course, nobody really knows and the one thing that everyone agrees on is that he's a wild card. So anything can happen really.

Will he really build a wall and ban Muslims???

It could take a while, at the minimum until the end of the week, for the market noise to start winding down and for the markets to focus on a new narrative. In the meantime, the markets are moving.

This is an excellent time for short term traders to make some great technical trades, and for long term investors to re-balance their portfolio based on the new fundamentals.

What's next?

The next market focus will likely be on the Federal Reserve's next meeting on December 14th. Expectations couldn't be higher that the interest rate will go up on that day.

Here we can see the market expectations of a rate hike in December (green line) according to Bloomberg...

Trump has thrashed Janet Yellen for keeping the rates artificially low and some have even speculated that he would fire Yellen and appoint a much more aggressive Chairman. However, that won't happen before the December meeting since Trump will only be appointed in January.

So unless, we see some kind of stock market crash or other crazy geopolitical even in the next month a rate hike in December is very much on the cards.