The day after the midterms brought a big relief rally. The day after that gave it all back and more. In this episode of the Market WineDown, Lex and Mark try to make sense of the whiplash. Lex’s read: the first day was relief that the uncertainty was over, with Democrats winning both chambers of Congress and a Republican in the White House. On day two, investors started weighing what different policies could mean, especially for AI and data centers, and those stocks were hit hardest. Mark agrees the rally looked overextended and thinks the selloff is partly an excuse for a rebalancing that was long overdue after markets neared all-time highs. He stresses looking at the moves over several days rather than one. Neither sees this as the end of the bull market. How would they trade it? Stay small and nimble, says Mark; catching falling knives is a delicate art. For long-term investors with money on the sidelines, steady dollar-cost averaging still makes sense. Both note that implied volatility and put skew have jumped, which can make selling puts attractive for those who size appropriately. Mark adds that market makers he talked to point out that choppy days create pricing quirks, as some participants overpay for liquidity, so there can be opportunities even when the usual advice is to sit still. The Schoolhouse Rocks segment is a preview of the next version of Tradier’s desktop platform, which Lex says is in testing and can’t be shown yet. Mark argues the hardest part of trading for anyone is generating ideas, and that AI tools can now help traders think through a trade, not just execute it. The features Lex describes include research tools for building a trade thesis, backtesting, placing orders directly on a chart by dragging profit and stop levels, alerts sent to your phone with scripting for custom conditions, and a what-if view built into the order ticket showing breakevens, maximum profit and loss, and buying-power impact. Lex says the team hopes to release it around year-end and plans frequent webinars on it. Beyond the Bell turns to Cabernet Franc. Mark describes a night out in New York that included a 2012 Clos Rougeard from the Loire, and the hosts discuss how the grape, long used mainly for blending in Bordeaux, has gained respect as a standalone wine, along with Petit Verdot. Key takeaways: – The post-election rally faded as investors weighed policy risks to AI stocks. – The hosts see the selloff as a rebalancing, not the end of the bull market. – Higher volatility can create opportunities, but position size matters. – New desktop platform features are planned, with a target around year-end. This episode is educational and not a recommendation. |
