Monday, April 24, 2017

Big market impacts by the French election result today

Today, markets reacted to the results of the French election in which the pro-EU candidate won for the initial round. SPY & QQQ had the biggest surge (up 1.1% & 1.2% respectively) since they started to fall about 7 weeks ago. The VIX volatility index had a biggest drop (25.9%) in years.

Besides the stock market rally, the bond market (TLT) dropped as investors exited US bonds to take more stock market risks. The Gold market (GLD) also took a beating as investors reduced the level of concerns for world affair uncertainties.

The strong market impacts of the French election is shown in the market chart below. With the big rally of the stock market, the market outlook is definitely turning more bullish now. I had entered bullish positions on a few stocks (EPI, EEM, PVH) and plan to document them later when I get time.

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