FinanCollege

The US Market is waiting

TVC:SPX   S&P 500 Index
The US elections next week bring the market to a point where all we have to do is wait and of course, prepare our trading account for the crucial hours when it will be revealed who will lead the country in the next 4 years which are expected to be very difficult and challenging especially in the economic and social aspects.

Technical analysis aspect
We can clearly see the market prepare itself for the election day based on the S&P500 triangle pattern , the breakout will take place next week between Tuesday to Thursday How will the identity of the winner affect the market? See the post from the 5th.
Strong fluctuations in the leading US indices are not expected during this week, and even if the upcoming earnings reports show unexpected results, it will be a sharp but temporary and short-term reaction.

What should you do until the election?
Portfolio protection: If you are a low-risk investor, avoid trading assets that are considered volatile such as Bitcoin , low market cap stocks, exotic currencies, and oil .

Get Ready: With a proper post-election trading plan that includes exit points (stop loss & take profit), accurate and right ratio of the exposure based on account balance, a good trader can make around 20% within a short period of time (1-2 weeks) after the election.
The 20% can be $100 or $100,000 (depending on the account balance), in addition, a large balance reduces risk by spreading the risk across many assets.
Increase the account balance is a-must in such events if the current account balance is low or insufficient in order to split the risk across 5 different asset at the same time.

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