Tough market ahead.....

Ever since election, many sectors have come alive, steels, base metals, banks to name a few.

Lately most sectors are stalled and below their highs of this rally.

Bank earnings were good on Friday, but failed to rally any stock.

Many are wondering, why most stocks are not moving after they bought.

In order to explain little to no movement in past 3 weeks, we have to acknowledge tremendous move they all had since election day. 50% to 100% move was quite common.

The real question is, IS everything priced in or we are headed lower to find support.

My answer is NO, everything is not priced in......

We are going from euphoric UP move to sideways movement to work out euphoria.

Monday market is closed in US, but we are open worldwide including Toronto.

Friday is inauguration day, means low volume and flat market.

Tuesday to Thursday should be upward move.....

It is normal to expect, that week after inauguration could be a down week.

It is almost impossible to predict what markets will do, but we all have to predict probabilities to position our trades.

Market is generally difficult, but we can overcome or increase our odds by being diversified in many sectors.

2017 is being predicted by Barron's on Friday as "single digit gains"...

I personally think that, oil, banks, gold and base metals will outperform.

Patience and conviction will be tested in 2017.

Small caps have a much better chance to do very well, as they are undiscovered and brokerages do not tout them.

We may have sharp pullbacks on policy announcements, but, that is to be expected with "trigger happy twitter feeds"

SO..sit back and evaluate your investing / trading temperament and match it with 3AM tweets, IF you can take it and not overreact, you will be fine.

Markets do change with events and political environment, once all is discounted, then there is a predictable routine.

Good luck with your strategy and comfort level......

BLOG does NOT give buy or sell.

Saleem