With the election in the rearview, it’s time to process the market reaction.
The pop in IWM 0.00%↑ is one of the most important developments this morning. The trade has been very straightforward, above $225 the bias is to the upside. The market’s been fighting that since July, but the gap up this morning may be the gush needed to keep it above. A retest (and possible break) of all time highs is the target.
I’m selling index spreads against $225 as a means of participating today. I’m watching for any retrace back towards $225 to see if a re-entry point emerges. On a break of the days highs I may even consider a leveraged option such as UWM 0.00%↑ or TNA 0.00%↑ as a day trade.