Buying Panic

It was a very timely call when I removed my hedges last week.  Small stocks exploded to the upside after the election.  Unfortunately, I was not in a big hurry to remove those hedges because of the election uncertainty and I didn't get it done until mid week.  Once again I need to learn the lesson of not trying to outguess the market on a day to day basis and simply executing trades on Monday morning.  This week, in spite of the big move, I am holding steady and not placing hedges back on.  Valuation obviously got worse last week but not sufficiently to turn negative.  Earnings expectations are still increasing and unemployment is positive.  Some sentiment indicators weakened significantly last week but, overall, sentiment is now neutral.  I am showing a two year simulation chart above that is not hedged.  My data provider is not giving me what I need to show a hedged result at this time.