The major US equity markets have been consolidating for days going into this past weekend. Today, November 7th we are seeing a surge in high beta names and corporate bonds. I strongly believe this is a clear signal that this recent downturn was simply a bull flag. It's not to late to back up the truck long equities for the rest of the year. I especially like financials via the etf (XLF) and the biotech sector with (IBB). Financials are breaking out here. Biotech has just put in a confirmed pipe bottom formation near multi-year support. I see confirmation of follow through in equities in looking at high yield corporate bonds. They gaped up big in the morning. A Hillary Clinton or Trump presidency will be pro banks and financials.
full disclosure: long UYG and BIB the double long XLF and IBB etfs
