Friday was the-first reaction to "probable winner" in this election.....
Reaction to good jobs report was surprising......
Just for the record...when Obama won last time...market tanked the next day...
Jobs report was pretty good & IF it didn't have any election implication, we would have rallied.....
Republican are generally viewed as better for economy, being pro-business....
For Democrat, Clinton regime was pretty good for stock market...so take your pick with no real difference.
One thing which "maybe reality" no matter who gets elected....that Capital Gains & Dividend may be taxed @ higher rate...so selling winners maybe a "smart move" or putting it "my way"..keep on booking gains...
Indices looks like in a holding to downward pattern till Wednesday....
Wednesday could be negative or positive depending on who wins......
IF we go down on Wednesday we may break below 1403.28......
So i say..Monday to Wednesday maybe "negatively slanted"...you know what i am implying about the winner....
BUT the good news IS...that many stocks are trying to buck the trend & are behaving much better than indices......
As they say "NEVER FIGHT THE TAPE"
We have come down 4.83% in S&P 500 from its high of 1474.51...another 2% is what may be the case till Wednesday....
This market has a tendency to "recover quickly".......
Staying put in stronger stocks may be the-best approach....
I will continue to "book profit" and keep rotating in stocks i know well.
Good luck with your strategy & comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hey Saleem,
Great blog! I often trick myself into thinking some badly-behaving stocks are good stocks in disguise--that is rarely true. The tape tells great stories but many don't listen. I hope to listen better in the future.
Let's get this election finally over with! :)
Stocktrader
Hi Stocktrader,
Market has been difficult since September.....
In my Decades of trading...only thing i have come to believe is "buy to trade" & "book profit as soon as you see them"......yes i miss some gains few times but 90% that strategy was a good one.
In my decision to buy or sell...RSI has been of great help...sadly most stocks do not get to extreme levels like 70 or below 30+...so i trade from 30+ to 60 area.......
Do not be "hard on yourself"..you had great success in early part of the year....your strategy needs to expand to "trading stocks"......
Good luck with election result, i am counting on "clear victory" NO hanging Chad.....
Saleem
Hey Saleem,
After a crisis of confidence over the weekend, today is starting much better. Great action out of APKT, FIO, ELOQ, LF so far! :)
Stocktrader
Hi Stocktrader,
Include PANW in your "fruit of patience"
Good luck !!!
Saleem
Hey Saleem,
Oh yes! As the morning went on, it has now become my second best performer from the unchanged earlier.
Stocktrader
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