It looks like the Russell will eclipse July of 2022 as its best July on record.
You can view it in two ways.
1. Markets have broken out and the risk is expanding into non tera caps.
2. We are extended near the maximum edge of the range.
If the latter, we are ebbing into men reversion territory. In other words, this “might” be a good spot to hedge of reduce risk. Admittedly, I don’t feeeeel like doing that because the gains feel good, as I am fully long +186bps for the session. However, you should be alerted to the idea that the gains enjoyed might dissipate soon, not due to any bearish news or change in sentiment; but merely based upon the laws of mean reversion.
On a longer time horizon, a Trump win is inherently bullish for markets because it boosts investor confidence. Big winners will be banks and oils, but main banks. Expect deals and lower rates, and a runaway ship into inauguration.
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I imagine Trump has been seriously educated and enlightened by this last weekend, as have we all. Even a grazed ear has the potential to moderate a person. But it could also do the opposite. At 78 years old this is pretty heavy action.