Friday was a turning point in market, when uncertainty was thrown into election in US.
Wall Street hates uncertainty....
FBI letter created new uncertainty .....
Election result may not be any different than before, but, now, there is a "wait and see" factor.
SO, until November 9th, market will mark time for actual result.
Polls may reflect a tighter race than before.
Stocks will be in "neutral mode"
Investors and traders, will be glued to daily polls and rhetoric, which will be in overdrive.
Our portfolios, needs to be managed till election results are out, some may not do anything, while others may have to reduce exposure.
As most of us are traders, it will take patience, to wait the outcome of this election.
Technically, most index are not looking healthy, most are below 50 DMA.
Russell 2000 is the weakest and SOX is the strongest.
The strategy, is to look for opportunities during this pause.
Many strong stocks will come to an attractive level prior to election result, that will be an opportune time to reorganize portfolio.
While politics takes a center stage, trading needs to take a backseat.
This pause may be a good time to review strategy and portfolio composition.
Good luck with your own strategy and take on events.
BLOG does NOT give buy or sell.
Saleem
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