It’s been a crazy two days.

The reaction to both the election and the FOMC was overwhelmingly positive for risk assets across the board.

A long list of stock market indexes and individual issues just had their best day since the pandemic lows almost 5 years ago.

NYSE new highs just hit its highest reading in years, telling us the rally is supported by the broadest level of participation this cycle.

The election ended up being the catalyst to break out prolonged ranges in things like regional banks, biotechs, speculative growth, industrial metals, and even bitcoin.

These groups are finally joining the bull market party, and they are kicking it off in a big way.

So, what’s the big takeaway from all this? 

The chart that illustrates it best is the Russell 2000 Micro-Cap Index $IWC:

Happy election day, everybody!

I’m excited for tonight. Know why?

I am so ready to put this election behind us.

Last week, I did an interview with Nerd Wallet about investing around the election. You can read the article on their site. 

I brought a bunch of charts along for it so figured I’d share some with you.

As we prepare for the voting booths to close and brace for the market's reaction tonight, here are some things I’m thinking about.

I think the uptrends that are already in place, will remain in place. Maybe some post-election volatility will give us the opportunity to get into these trends at a discount.

With everyone trying to find a cute election trade, my plan is to keep doing what I always do.

Whether it is Trump or Harris come Tuesday night… or even some sort of contested, disaster scenario… I want to be positioned with the primary trend.

The best piece of advice for investors right now is that reactions to political events - like reactions to most events, tend to occur in the direction of the underlying trend.

In other words, once the election volatility comes and goes… I bet the same trends remain in place.

Things that have already been trending higher will probably keep heading higher.

And things that have been trending lower will probably keep falling.

Elections happen. Presidents come and go. But trends persist. 

One of the big trends we’ve been riding higher this year is the bull market in precious metals.

Let’s recap…

First, it was Gold:

We need to talk about SoundHound.

This setup was so nice that we bought the calls twice.

As it turns out, it was the right move. We sold the double yesterday.

But, we’ve got a lot of questions about this one along the way. And the truth is, nothing we did here was out of the ordinary. This sort of scenario will happen a lot with the Breakout Multiplier system, so it’s important we discuss it.

I put on trades that go to zero all the time. 

I am unaffected by these losers. In fact, when I see zeros stacking up, I get excited. I know I’m that much closer to a big winner. 

It’s a game of numbers. I’ve been doing this for a long time.

But the way I lose is even more blatant sometimes.

I will put on the same exact trade over and over again, until it works, or the setup is invalidated.

I think it’s really important to own the junkiest stuff right now.

Risk appetite is improving across the board.

We’re seeing a growing list of speculative assets break out from consolidations.

I took a quick break from the Morning Show today to buy this textbook reversal in Dogecoin.

All things Elon are working. I think Tesla is a good buy here, too. 

As it turns out, $44B was an absolute steal for Twitter. He bought himself the best seat in the White House and will be laughing all the way to the bank for the next four years.

I also put another risk reversal on Coinbase and bought some short-dated calls in a beat-up Bitcoin miner this morning.

While I was doing this, Mike Antonelli was on the show telling JC how he’s seeing the same thing.

For the past several years, China has been uninvestable.

Then we got one of the most epic rallies in China’s stock market history…

And then we were so extended that it still felt uninvestable. But for a very different reason.

Earlier this month on the morning show, Spencer asked: “how do you even buy these stocks here?”

I understood his frustration. Sometimes, the best trends are the hardest to get into.

If you took a shot and bought China earlier this month, you’re already in a significant drawdown. 

If you have the right timeframe, I think you’ll be fine, but you never want to chase in these situations. After a momentum thrust, always expect a little backing and filling, or corrective action. And be prepared to pounce on it.

Everything was working today.

US indexes all booked nice gains, with the Dow and S&P achieving another new all-time high.

There was a synchronized global rally led by China’s Shanghai and Shenzhen, both up over 2%.

Software, financials, industrials, General Electric, Nvidia, Goldman Sachs… 

They all had one thing in common to start the week: new highs.

But it was the crypto market, more than anything, that was giving me the risk-on feel.

Alts are waking up here. Our custom altcoin index was up over 6% today.

More importantly, it looks like Bitcoin is about to break out of this range we’ve all been waiting for.

Here’s how I know:

In bull markets, you gotta go for it. 

Tops fail, continuation patterns resolve higher, and a growing list of stocks complete reversals. This is what bull markets are made of.

It’s also what’s happening now. 

So, I’m looking to add exposure to the best setups.

Over the years, I’ve developed a system for this. It’s more of a portfolio sleeve than anything.

I call them kickers. I think of these trades like the cherry on top of a perfect carvel sundae. You don’t need it, but it makes it that much sweeter.

Let’s talk about what I’m talking about…

Robinhood completed a textbook trend reversal earlier this year. It hit a target or two, and then it started ranging.

JC has been giving a special mastermind class on Technical Analysis, and last week he invited me on to discuss momentum thrusts and crossovers. You can watch it here.

We dove into a variety of topics, covering initiation vs exhaustion, thrust clusters, and even a conversation on the difference between MACD and PPO.

One of the points I hoped to drive home in this presentation was around how to know when a momentum thrust is significant. 

For me, momentum thrusts and breadth thrusts are exactly the same in this way. When they are notable, they are hard to miss. They come in spurts and clusters.

What do I mean by this?

Let’s use China as an example because I think we are witnessing a historic initiation phase right now.

A few weeks ago, Chinese stocks had their second-best day in history. 

People tell me crazy shit on a regular basis.

As a market participant, I had to get used to this. 

My golf buddies have been promising me the end of the world for years now. Some of them even have special food for it.

My Florida man neighbor is absolutely convinced that Jerome Powell heads a top-secret underground society of the world’s wealthiest individuals.

This is the kind of crazy that pollutes my eardrums almost every day. I’m numb to it. I’m barely listening at this point.

But there is one word that really moves me. It always catches my attention. 

Uninvestable.

When they tell me something is uninvestable, I really perk up. It’s music to my ears.

I remember when crypto was uninvestable in the winter of 2022. Solana was in the single digits. It’s up like 1,300% since.

Who remembers the uninvestable stocks from last year?

2023 was a bad one for the banks. Bank runs. Contagion. Balance sheet problems. Government bailouts… 

“You can’t own these stocks!”

With stock market investors looking every which way at different market-moving headlines today, let's take a step back and talk about what's really important.

We just got monthly candles. It's time to zoom out. 

And when we do, is there a chart more important than the US Dollar Index $DXY right now?

The dollar has had a very strong inverse correlation with stocks and other risk assets for several years now.

Equities have done well for the past two years while the dollar has been rangebound. 

Just imagine how they'll do if DXY breaks down from its current range:

I'm headed to the beach today.

It's been a rainy and windy week in the Florida Keys so we've been all couped up inside.

Now that the Hurricane Helene storm system has played its course, we're due for some beautiful weather.

I woke up this morning and I checked the forecast.

It said the sun will be shining.

Another thing I typically do from bed each morning is check my crypto accounts and watchlists. 

When I did, I noticed the SOL is shining too.

Solana has rallied about 20% since the middle of last week.

When it comes to the overall crypto market, Solana is as important as anything.

It is the 4th largest token with a market cap of about $74B. For context, if Solana was in the S&P 500, it would carry a larger weight than large cap stocks like Target, Crowdstrike, and FedEx. It's a big deal.

But more importantly, Solana is the secular leader when it comes to crypto. 

It tends to move first, and tip off the rest of the asset class, and it tends to outperform during bull cycles.