Citizens of Britain opted to take a bold stance, and the financial futures markets paid the price

If you were on the sidelines last night when the news hit, congratulations. It is easy to get sucked into the sorrow of knowing you missed out on some big market moves, but the reality is....most traders attempting to surf the waves of volatility wiped out. Either they were stopped out prematurely on the pre-Brexit realization, or they were too late to react and sold the lows in the ES (or bought the highs in the ZB). Many of my colleagues were watching the futures markets from afar, and happy to be experiencing one of the largest currency and Treasury moves in history with a bowl of popcorn in their lap instead of a bottle of whiskey.

We aren't even going to attempt to predict what Monday will look like. Nor will we make any trading recommendations until the chaos dies down. That said, we will be strongly considering adding to our short Fed Funds futures position early next week.

The futures markets have voted: Did Donald Trump awaken the bull market in stocks?

It is no surprise the markets are fickle. Wall Street appeared to favor the stability of a Clinton regime but in the end they voted for growth policy following a Donald Trump victory. Whether or not the stock market's optimism will be mimicked in the economy is yet to be known, but for now we believe the euphoria could take us into year's end.

Stocks often find a significant low in October, this year it seems that low might have been a few weeks late. Nevertheless, seasonal strength and one of the most convincing key reversals we've ever seen has us looking higher. That said, volatile markets can change quickly. The bulls will need to break above 2165, until this occurs the bears are still alive.

Now that the election is over, the market "should" start focusing on the Fed.