The overnight futures markets just opened and it was a “dramatique,” open. Of course, I’m using the French word for dramatic, and that seems appropriate as the reaction seems to be primarily a response to the French Presidential election results so far.
S&P 500 Future are up over 22 points, about 1% and Gold is down over 21 points, about 1.6%. Oil is up just a bit. When there is a dramatic move like this, it is best to let it settle a bit and not try to react.
Trying to chase fast moving markets can result in “whiplash,” and can be costly. So, we are proceeding with caution. If a significant trend is forming, we’ll have time to see it and to participate.
Several headlines written just hours ago predicted a significant market pullback if the French far right candidate Marine La Pen made it to the final round. She made it, the markets are heading up.
Those opinions are what I call “noise.” They may be interesting and even well informed. But we need to trade on the “Reality” of the market, what it is actually doing. And the current reality is volatility that we will let settle before making any big moves.
Stay tuned, if we get more clarity, I’ll send an update mid-week.
