“We want to perceive ourselves as winners, but successful traders are always focusing on their losses” – Peter Borish”

1. Trump Administration: Priebus, Bannon Given Key Roles — U.S. President-elect Donald Trump has made the first official appointments to his White House administration after a shake-up that saw VP-elect Mike Pence replace Chris Christie as the head of his transition team. RNC Chairman Reince Priebus has been selected as Chief of Staff, while Trump’s campaign Chairman and former head of news outlet Breitbart, Steve Bannon, will lead as Chief Strategist and Senior Counsel.
2. US Retail Sales Rose 0.8% in Oct vs. 0.6% Increase Expected — the Commerce Department reported retail sales increased 0.8 percent last month, also boosted by demand for building materials likely as households cleaned up and made repairs in the wake of Hurricane Matthew. The latest figure shows households bought motor vehicles and a range of other goods. September retail sales were revised up to show a 1.0 percent increase instead of the previously reported 0.6 percent rise. The combined September and October sales gain was the largest two-month rise since early 2014.
3. Buffett Buys Airlines In Latest 3Q Holdings — After famously shunning the airline industry, his holding company Berkshire Hathaway (BRK.A, BRK.B) invested $1.2B in American Airlines (NASDAQ:AAL), Delta (NYSE:DAL), United Continental (NYSE:UAL) and Southwest (NYSE:LUV). The Sage of Omaha did not share his rationale behind the trades, but he has long been bearish on the sector.
4. SEC approves Consolidated Audit Trail — despite years of delays, the SEC has finally approved a plan to introduce a vast surveillance system to oversee trading on the $23T U.S. stock market, in response to the 2010 “Flash Crash.” The creation of a Consolidated Audit Trail will establish a regulatory central database and monitor every trade order, execution, modification and cancellation in real-time.
5. AAII’s Weekly Bullish Sentiment — After a record 54 weeks where the AAII’s weekly bullish sentiment reading was below 40%, the Sentiment surged above 40% for the first time since October 2015 after Trump was elected.

The bearish sentiment also declined this week, falling from 29.3% down to 26.6%.

The week ahead — Economic data from Econoday.com: