A lot has happened this week, some of which will certainly go down in history.
Though we may not know for sure the outcome of the election quite yet, the market’s already feeling rippling effects from November 3rd. After it was announced Trump would take Florida the after-hour markets began to skyrocket.
Since then…
As more votes come in we’ve seen volatility with the announcement of former Vice President Biden winning Michigan, Wisconsin, and Arizona (while some news outlets have yet to officially call this, others have). Pennsylvania and Georgia have been undecided for longer than we expected.
The State of the Market:
While we didn’t get an answer for the election right away, we also didn’t get major volatility to the downside.
In fact, we got just the opposite, with the market rocketing higher after digesting the news on Wednesday the 4th. This price action meant we broke up above key resistance in the indexes, along with many key charts. It was clearly a ‘risk on’ reaction, with money flowing into volatile COVID stocks, cloud computing, tech, semiconductors, and more.
It’s still too early to call for sure, but so far the reaction has been very bullish for the stock market, and we don’t even have an answer yet. Is it possible that the market’s reacting to the sheer fact that we have more information now, than we did before?
It’s possible. What I do know for sure, is that most of the election risk is behind us, and the unknowns are soon to become known factors. There are also plenty of setups right now, including within a new area of the market that I’ve been looking at — clean energy and solar powered companies. They sky rocketed higher as Biden gained in the polls, but pulled back this week. Could it be time for entry?
Tell me, what are your favorite stocks and industry groups right now?
Keep in mind that 2020 has been a whirlwind of a year and if it’s taught us anything, it’s that anything is possible. That’s why I thought it was important for me to add a bonus live trading session for Mastery members, tomorrow, Friday, November 6th from 12 pm – 1 pm CT. Click HERE to join.
