Is the Market Waiting for Election Clarity?
| | | | | | | | | | | After the Halloween dip that saw S&P futures drop 2%, the DIA lose 1%, and the QQQ fall by 2.5%, we’re seeing the markets in a holding pattern.
As of today, they’re all trading in a tight range, which tells me one thing: traders are waiting.
As I’ve been saying — we’ve got a busy week coming up with U.S. elections tomorrow and the Fed interest rate announcement on Thursday.
The uncertainty around both is enough to keep even the most confident traders sitting on their hands. And that’s not surprising — when there’s this much potential for big, market-moving news, patience is key.
The market doesn’t like surprises. Investors want a clearer picture of where things are heading before committing new capital.
The major indexes might not break out of this sideways action until after these two big events are in the rear view mirror.
So, what should you do in the meantime?
This is where discipline comes in. It’s tempting to jump into trades just for the sake of action, but sometimes the best move is to wait.
If there’s one thing I’ve learned, it’s that protecting your capital is just as important as making it grow.
Keep an eye on the news, stay patient, and be ready — because once the uncertainty clears, the market could be set for its next big move.
— Geof Smith
P.S. This Wednesday at 12 noon Eastern, I’ll be LIVE with four other market experts with our Post-Election Roundtable Briefing.
If you want to hear my up-to-the-minute analysis on what I’m doing based on the market’s reaction to the election results, you’re going to want to save your seat right here! | | | | |
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After the Halloween dip that saw S&P futures drop 2%, the DIA lose 1%, and the QQQ fall by 2.5%, we’re seeing the markets in a holding pattern. As of today, they’re all trading in a tight range, which tells me one thing: traders are waiting. As I’ve been saying — we’ve got a busy week coming up with U.S. elections tomorrow and the Fed interest rate announcement on Thursday. The uncertainty around both is enough to keep even the most confident traders sitting on their hands. And that’s not surprising — when there’s this much potential for big, market-moving news, patience is key. The market doesn’t like surprises. Investors want a clearer picture of where things are heading before committing new capital. The major indexes might not break out of this sideways action until after these two big events are in the rear view mirror. So, what should you do in the meantime? This is where discipline comes in. It’s tempting to jump into trades just for the sake of action, but sometimes the best move is to wait. If there’s one thing I’ve learned, it’s that protecting your capital is just as important as making it grow. Keep an eye on the news, stay patient, and be ready — because once the uncertainty clears, the market could be set for its next big move. — Geof Smith P.S. This Wednesday at 12 noon Eastern, I’ll be LIVE with four other market experts with our Post-Election Roundtable Briefing. If you want to hear my up-to-the-minute analysis on what I’m doing based on the market’s reaction to the election results, you’re going to want to save your seat right here! |
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