Friday's market sell- off was the result of a big options expiration date. The post-election rally was a vertical spike, and that markets were so stretched from the 50-DMA, a return to earth was inevitable. Markets are working off their "overboughtedness," and are close to triggering a sell signal. Markets tend to rally after Thanksgiving and into the first two weeks of December. Choppy action should be expected going into the end of the year. While the trend into January appears to be positive, be aware of the risks. With interest rates bouncing up and down over the past two weeks, Bonds were used as hedges going into the election; interest rates are overbought on multiple levels, and bond traders are extremely short. This is typically a good set up for a yield reversal. If you're long bonds and so worried that you're not sleeping at night: Sell your bonds. Sell any asset that's keeping you awake at night. In the short term, all that matters are technicals; in the long term, it's fundamentals that count. Hosted by RIA Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton, Executive Producer ------- Watch the video version of this podcast: https://www.youtube.com/watch?v=_Q86SaUTa5s&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1 ------- Articles mentioned in this report: "Exuberance – Investors Have Rarely Been So Optimistic" https://realinvestmentadvice.com/exuberance-investors-have-rarely-been-so-optimistic/ ------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ ------- Visit our Site: https://www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to SimpleVisor: https://www.simplevisor.com/register-new -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #MarketExuberance #MarketRally #MarketPullback #MarketSellOff #RiskManagement #SellBonds #SellAssets #PostElectionRally #SellSignals #MarketRisk #Gold #20DMA #50DMA #100DMA #InvestingAdvice #Money #Investing