Will the Election News Get SOLD? - Tuesday Review

Last night I wrote how I expected the action to be very mild today as traders looked to square off positions ahead of the election. This was anything but the case as the averages continued to steam ahead even after a full week now of strength across all sectors. There were further big moves in many commodity stocks with some attempting to break out of their newly formed bases. Solar stocks, especially, attracted a bid and pushed higher even with being already overextended to the upside. Most of these moves, bar the solars, has come on light volume and leads me to believe these moves won't stick. It has become nearly impossible to find an entry point with a good risk/reward and plans to hold for less than a few minutes. It seems this is setting us up for a classic sell the news reaction to the election. We will see how it plays out with the election tonight. I will be watching the solars closely tomorrow for a possible short entry as many of them have close to doubled over the past week and are nearing resistance at their 50 dma. Already short a small amount but I think it will be a play on the minds of many traders so I don't to put too much capital to work quickly and possibly get squeezed. I'm sure some traders took the trade overnight hoping for a gap down. If this doesn't occur some are likely to get squeezed out of the gate and might lead to good entry. It is a high risk trade, with the strength they have shown as of late supported by good volume but it could offer a good risk/reward it timed right and with a tight stop in place. I am thinking this might offer a nice little hedged trade in conjunction with going long DXO. I will post it ASAP if I take one tomorrow.

Check my early post on my sell on APWR and only buy today of DXO.