It was bound to happen to the Russell 2000 index. We finally saw a down day. One heck of a win streak for the small cap index as the final win streak ended at 15 days. We have not seen a rally like this in quite some time. You will have your naysayers and pundits will be giving you 101 different reasons to love or hate this market. What we do know is a win streak like this is typically bullish. We expect to see this trend to continue after some consolidation. There is no need to get after the reason for the market moving higher. All we need to know is we have an uptrend and we are going to continue to ride it.

Do not over complicate your process with needless analysis of the current economic situation. Even if you think Trump is the worse choice for president! Even if you think he is the best choice it simply does not matter to the stock market. Sure, historically when you average out returns Democrat Presidents do have the edge. We can only trade what is in front of us not what we think may happen. Crystal balls do not exist and we only have prior behavior to go on.

There are certainly day and swing trading opportunities we have for our chatroom members. We continue to try and find opportunities for our members. However, we are not going to force trades just to have trades. Too often we see folks need the action so they trade. This is a dangerous situation for most as it will lead to heavy losses in your portfolio. Stick with Big Wave Trading and we’ll see you through this market.

We may see small caps consolidate the recent gains. It may get choppy, but stick with the process.