Back To Back Days Of Gains; Election Looms
On the day of the election stocks were able to close in positive territory. This market has bounced back after a 9-day sell-off. Volume in the S&P 500 index was lighter on the session as well as the NASDAQ. Whether this was simply short-covering into the election will remain to be seen. Remember, most consider the market to rally with a Clinton win and the market to tank after a Trump win. The other thing to remember is when the Brexit vote was finalized while the market sank initially the market did find its footing and go on a big rally. There are so many possibilities it is senseless to try and guess what will happen. We have the ingredients for an uptrend and it has been a good two days, but we’ll need more time.
We have been saying in our chat room is we will likely revisit the lows. Now, prior to 9pm EST futures are moving lower as election results pour in. The next few days will be interesting to watch and we’ll be all over our process. Volatility will likely increase with intraday swings getting wild. We thrive in times of volatility where the men are separated from the boys. Women are all strong. Bottom line we are going to stick with the best indicator and that is price. No need to get bogged down with what we think the market will do. Price always wins out.
Not much else to report about and we will remain in a wait and see pattern. We’ll take what this market gives us.